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On December 31, Abela Company estimates that it will pay its employees a 2% bonus on $42
On December 31, Abela Company estimates that it will pay its employees a 2% bonus on $42.000 of net income attor deducting the borius. The bonus will be paid on January 15 of the next year Requirements 1. Jautmalize the December 31 transaction for Abela, Requirement 1. Joumalize the December 31 transaction for Abela Accounts and Explanation Debit Credit Emplove Bonus Exne Date The Choose from any at or enter any number in the input Melds and then continue to the next Question
Requirements 1. Joumalize the December 31 transaction for Abela 2. Journalize the payment of the bonus on January 15, (Record debits first, then credits. Round all amounts to the nearest cent. Select the explanation on the last line of the journal entry table.) Requirement 1. Joumalize the December 31 transaction for Abela. Date Accounts and explanation Emplove Bonus Expono Debit Credit
Expert Solution
Calculation of bonus paid to Employees:
Net income: $ 42,000
Let the bonus be x,
therefore; x = 2% ( 42,000 - x)
x = 840 - 0.02x
x + 0.02x = 840
1.02x = 840
x = $ 823.53 or $ 824 (aprrox)
Journal Entry:
| Particulars | Debit | Credit |
| On 31st Dec | ||
| Employee Bonus Expense A/c Dr. | $ 824 | |
| To Bonus Payable A/c | $ 824 | |
| ( being Bonus Due for the year) | ||
| On 15th January | ||
| Bonus Payable A/c Dr. | $ 824 | |
| To Cash A/c | $ 824 | |
| ( being Bonnus Paid) |
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