Acc225 Fundamental of Accounting Principles: E11-3 For the year ended December 31, 2009, Kava

Acc225 Fundamental of Accounting Principles
E11-3
For the year ended December 31, 2009, Kava Company has implemented an employee bonus program equal to 3% of Kava's net income, which employees will share equally. Kava's net income (prebonus) is expected to be $900,000, and bonus expense is deducted in computing net income.

1. Compute the amount of the bonus payable to the employees at year-end. (Use the method described in the chapter and round to the nearest dollar. Omit the "$" sign in your response.)
2. Prepare the journal entry at December 31, 2009, to record the bonus due the employees. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
3. Prepare the journal entry at January 19, 2010, to record payment of the bonus to employees. (Round your answers to the nearest dollar amount.Omit the "$" sign in your response.)
Powered by