Springfield Company offers a bonus plan to its employees and the
amount of the employee bonuses for the current year is estimated to
be $966,000 to be paid during January of the following year. The
journal entry on December 31 to record the bonuses is:
Debit Estimated Bonus Payable $966,000; credit Cash
$966,000.
Debit Employee Bonus Expense $966,000; credit Prepaid Employee
Bonus $966,000.
Debit Employee Bonus Expense $966,000; credit Bonus Payable
$966,000.
Debit Unearned Bonuses $966,000; credit Bonus Payable
$966,000....