Taxpayer paid themselves a low salary for the last six months of the year (first year of business)- $1000.00/mnth - $6,000.00 for 2019. This $6,000 has already been processed through payroll and the necessary remittances have been completed.
Taxpayer wants a management bonus at year-end Dec 31, 2019 & can pay right themselves right away or shortly after because the business has sufficient funds. The bonus will paid in the first pay period of 2020. Thoughts on the fellowing journal entries?
Bonus will be around $20,000 - $30,000. $25,000 as an average will be used.
Thank you for your suggestions and insights ahead of time.