Q:1

On December 31, Spirit Company estimates that it will pay its employees a 5% bonus on net income after deducting the bonius. The comparyy reports net income of $30,000 before the calculation of the bonus. The bonus will be paid on January 15 of the noxt year. Read the tequirements. (Record debits first, then credits. Round all amoun's to the nearest cent. Select the explanation on the last line of the joumal ontry table.) Requirement 1. Journalize the December 31 transaction for Spirit. Requirement 2. Journalize the payment of the bonus on January 15. Requirement 1. Joumalize the December 31 transaction for Spirit. Requiremt Paid cash expenses. To record employee bonus expense. To record payment of employee bonus. On December 31 , Spirit Company estimates that it will pay its employees a 5% bonus on net income after deducting the bonus. The company reports net income of $30,000 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.)