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Chapter 9: 7QS (page 429)

Noura Company offers an annual bonus to the 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.

Short Answer

Expert verified

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

Step by step solution

01

Definition of the bonus payable

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

02

Journal entry of a bonus payable

DateParticularsDebitCredit

Employees Bonus Expense$15,000

Bonus Payable
$5,000

(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.

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Most popular questions from this chapter

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