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.

Requried:
Prepare the December 31 adjusting entry for Bayer by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Dr Bonus expense $50,000

Cr Bonus payable $50,000

Step-by-step explanation:

Preparation of Bayer, Inc., Journal entry

Since we were told that on December 31, Bayer, Inc agrees to provide a bonus of $50,000 to its employees this means we have to Debit bonus expenses with the amount of $50,000 and Credit Bonus payable with the same amount.

Dec. 31

Dr Bonus expense $50,000

Cr Bonus payable $50,000