On December $31,$ Smith Company estimates that it will pay its employees a $3\%$ bonus on net income after deducting the bonus. The company reports net income of $$42,000$ before the calculation of the bonus. The bonus will be paid on January $15$ of the next year.

Read the requirements. $($Record debits first, then credits. Round all amounts to the nearest cent. Select the explanation on the last line of the journal entry table.$)$

Requirement $1.$ Journalize the December $31$ transaction for Smith.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Dec$.31],[,,,],[,,,-],[,,,],[,,,]]$