Question

As of December 31, Bayer, Inc., agrees to provide a bonus of $50,000 to its employees (to be equally shared by all). The bonus will be paid in January.
Required:
Prepare the December 31 adjusting entry for Bayer.

Answer 1

Answer:

Dec. 31

Dr Bonus expense $50,000

Cr Bonus payable $50,000

Explanation:

Preparation of the December 31 adjusting entry for Bayer.

Based on the information given we were told that they agreed to provide a bonus of the amount of $50,000 to its employees which will be equally shared by all of them in which The bonus will be paid in January which means that the journal entry will be:

Dec. 31

Dr Bonus expense $50,000

Cr Bonus payable $50,000