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Business, 14.03.2020 04:22 kkmonsterhigh18
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.
a. Debit Estimated Bonus Payable $966,000; credit Cash $966,000.
b. Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000.
c. Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000.
d. Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000.
e. No entry since the bonuses are not paid until January.
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