For the year ended December 31, Lopez Company implements an employee bonus program based on company net income, which the employees share equally. Lopezâs bonus expense is computed as $40,777. 1. & 2. Prepare the journal entry at December 31 to record the bonus due and January 19 to record payment of the bonus to employees.

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Business

Leonardo Cohen

19 March, 18:36

For the year ended December 31, Lopez Company implements an employee bonus program based on company net income, which the employees share equally. Lopezâs bonus expense is computed as $40,777. 1. & 2. Prepare the journal entry at December 31 to record the bonus due and January 19 to record payment of the bonus to employees.

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Alisa Watson · Answer 1

Lopezâs bonus expense is computed as $40,777. Therefore,

The Journal entries are as follows:

(i) On December 31,

Employee bonus expense A/c Dr. $40,777

To Bonds payable A/c $40,777

(To record the bonus due)

(ii) On January 19,

Bonds payable A/c Dr. $40,777

To Cash A/c $40,777

(To record the payment of the bonus to employees.)