Chris Anger is the president of Anger Company, and his brother, George Anger, is the vice president.
Question:
Chris Anger is the president of Anger Company, and his brother, George Anger, is the vice president. Their compensation package includes bonuses of 5% for Chris Anger and 4% for George Anger of net income that exceeds $325,000. Net income for the year 2012 has just been computed to be $745,000.
1. Compute the amount of bonuses to be paid to Chris and George Anger.
2. Prepare the journal entries to record the accrual and payment of the bonuses. Summarize all withholding taxes related to the bonuses in an account called Various Taxes Payable. Taxes payable on the bonuses total $8,400 for Chris and $6,720 for George.
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1 The bonuses are calculated as follows Chris George Net income 745000 745000 ...View the full answer
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