Question: On December 31, Vazquez Corporation estimates that it will pay its employees a 3% bonus on $ 40,000 of net income after deducting the bonus.

On December 31, Vazquez Corporation 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.

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