General
Accruing Annual Employee Bonuses
Recording the expense for bonuses earned in the current year but paid in the next year.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bonus Expense | Expense (+) | 20,000.00 | - |
| Bonuses Payable | Liability (+) | - | 20,000.00 |
💡 Accountant's Note
Bonuses must be matched to the year the performance occurred, even if the check isn't cut until February.
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