On December 31, Vazquez Corporation estimates that it will pay its employees a 3% bonus on $

Question:

On December 31, Vazquez estimates that it will pay its employees a 3% bonus on $ 40,000 of net income after deducting the bonus. The bonus will be paid on January 15 of the next year.

Requirements
1. Journalize the December 31 transaction for Vazquez.
2. Journalize the payment of the bonus on January 15.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...