Quicken & Other Budget/Accounting Software/Bonus
Staff bonus for 2014 will be paid in January 2015. What is the entries to reflect the bonus in 2014 a/c instead of in 2015 accounts?
If you already have an account called "accrued wages payable" (liability account)
use that account. Bonus Payroll does not need a separate liability account.
I do recommend that accrued wage expense be a separate expense chart of account
rather than posting an accrual to normal wage expense. That way if the tax preparer
is looking to tie out wages to any reporting year end forms, the accrual entry
is not affecting that reconciliation.
To post the accrual create a JE
Debit Wages Exp - Accrued (expense account)
Credit Accrued Wages Payable (liability)
Memo - To accrue 2014 bonuses paid in January 2015.
You will reverse the journal entry on the date the bonus checks
That reversing entry is a copy of the original except you
switch the debit and credit
Create a JE
Debit Accrued Wages Payable (liability)
Credit Wages Exp - Accrued (expense account)
Memo - To reverse accrue 2014 bonuses paid in January 2015.
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
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