Esther Smith takes a three-month leave of absence from her job to work voluntarily, full-time, for Oldfarm, a not-for-profit organization that rescues abused horses. Smith is filling the position of director of operations because the regular employee is on paid sick leave. This position normally pays $85,000 per year.
Prepare the journal entry to record the transaction.
Prepare the journal entries to reﬂect the transaction.