Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $950,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

• Debit Employee Bonus Expense $950,000; credit Bonus Payable $950,000.

• Debit Unearned Bonuses $950,000; credit Bonus Payable $950,000.

• Debit Employee Bonus Expense $950,000; credit Prepaid Employee Bonus $950,000.

• No entry since the bonuses are not paid until January.

• Debit Estimated Bonus Payable $950,000; credit Cash $950,000.