Chags Study | Gided S: > C O eztc.mheducation.com..hm.tpx Guestion 8 lof 9 11 pe
ID: 2566500 • Letter: C
Question
Chags Study | Gided S: > C O eztc.mheducation.com..hm.tpx Guestion 8 lof 9 11 peints For the year cr od Dccc o r 31 2016. Lopcz o pany has impic on o an o po o bonus mgram o ncore. IRound your final answer to the nearest dollar. 1, Compute the amount of the bonus payable to na cmployees at yoar-and 1alto 5% of Lo 2's not Incom which C plo 5 wil shar cqua y Lo ozs n t Incomo pro bo is c oc od to bc 51.700 00 and onus c pcrsc is deduct in co pu ting nct 2. & 3. Prepare mejournal entry at Deremter 31 2015 to rerandthe honit din and .Ianuary 19, 2017 t mnrd payment at the bonus1n r ym; Journal entry worksheet Rccord the bonus dus the cmploycc at Deccmber 31, 201G. Note: Cntee DH: 31. 2016 Record enty Clear entry Vew peneral journalExplanation / Answer
Assume the Bonus amount = X Net income before Bonus = $ 17,00,000 Less : Bonus Amount = X Net Icome 1,700,000 - X X = 6% (1,700,000-X) X = 0.06(1,700,000-X) X = $ 102,000 - 0.06X X + 0.06 X = $ 102,000 1.06 X = $ 102,000 X = $ 102,000 / 1.06 X = $ 96,226 So the Bonus Amount which are payable to Employees = $ 96,226 JOURNAL ENTRIES Date Particulars Debit Credit Dec, 31 2016 Bonus Expenses 96226 To Bonus Payable Account 96226 (Being bonus is declared for the year 2016) Jan, 19 2017 Bonus Payable Account 96226 To Bank Account 96226 (Being bonus is paid to employees)