October 30, 2016 admin

Employee Bonuses

Adjustments to Income

EMPLOYEE BONUSES ADDITIONS TO INCOME ACCOUNT
9550

ACCOUNT EXPLANATION
Compensation accrued or paid to dealership employees based upon total dealership profit.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual of employee bonuses based on total dealership profit SE
    Employee Bonuses 9550
      Accrued Bonuses 2411
COMMENTS
  • Incentives and other compensation paid regularly and based on departmental operating performance should be accounted for as regular earnings.
  • Bonus accruals and payments to employees who are stockholders of the dealership should be made with the advice of tax counsel.