Question

In: Accounting

Noura Company offers an annual bonus to employees if the company meets certain net income goals.

 

Noura Company offers an annual bonus to employees if the company meets certain net income goals.

Prepare the journal entry to record a $15,000 bonus owed to its workers (to be shared equally) at calendar year-end.

Solutions

Expert Solution

 

Step-by-Step Solution

Step 1: Definition of the bonus payable

Bonus payable is the bonus that is due but not paid. This is the amount of the bonus that is not paid to the employees at the end of the year.

Step 2: Journal entry of Bonus payable

Date

Particulars

Debit

Credit

 

Employees Bonus Expense

$15,000

 

 

Bonus Payable

 

$15,000

 

(To record the bonus expense)

 

 

 

 

 

 

 

This entry is made to record the bonus expense of the company. The bonus expense of the company is $15,000

 

The employee’s expense account is debited with $15,000, and the bonus payable account is credited with $15,000.

Sahil Dangi answered 2 years ago
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