Vega Company expects to pay a 4% bonus on net income after deducting the bonus. Assume the company reports net income of $130,000 before the calculation of the bonus. The journal entry to record the accrued bonus includes a debit to Employee Bonus Payable, $5,000. a debit to Employee Bonus Expense, $5,200. a credit to Employee Bonus Payable, $5,000. a credit to Cash, $5,200.
Vega Company expects to pay a 4% bonus on net income after deducting the bonus. Assume the company reports net income of $130,000 before the calculation of the bonus. The journal entry to record the accrued bonus includes a debit to Employee Bonus Payable, $5,000. a debit to Employee Bonus Expense, $5,200. a credit to Employee Bonus Payable, $5,000. a credit to Cash, $5,200.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 4CE
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Vega Company expects to pay a 4% bonus on net income after deducting the bonus. Assume the company reports net income of $130,000 before the calculation of the bonus. The
- a debit to Employee Bonus Payable, $5,000.
- a debit to Employee Bonus Expense, $5,200.
- a credit to Employee Bonus Payable, $5,000.
- a credit to Cash, $5,200.
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