Question

Martinez Corporation provides its officers with bonuses based on net income. For 2020, the bonuses total $346,500 and are paid on February 15, 2021. Prepare Martinez’s December 31, 2020, adjusting entry and the February 15, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit

12/31/20 2/15/21

12/31/20 2/15/21

Answer 1

Credit Debit $346,500 Date Account Titles and Explanations December 31, 2020 Staff Bonus Expense Staff Bonus Payable/Accrued Liability (Bonus exepnses accrued and therefore recorded) $346,500 $346,500 February 15, 2021 Staff Bonus Payable/Accrued Liability Cash/Bank (Staff Bonus outstanding Paid) $346,500

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.