Question: On December 31, Weston Company estimates that it will pay its employees a 5% bonus on net income after deducting the bonus. The company reports

On December 31, Weston Company estimates that it will pay its employees a 5% bonus on net income after deducting the bonus. The company reports net income of $64,000 before the calculation of the bonus. The bonus will be paid on January 15 of the next year.
Requirements
1. Journalize the December 31 transaction for Weston.
2. Journalize the payment of the bonus on January 15.

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