329 Owners Bonuses Payable

Liabilities

Accrued

Synopsis

Account 329 is established to record the amount of Bonuses payable or accrued for payment to Owners.

Debits

Credits

Monthly provision to equal year-to-date bonuses payable to owners
Payments made

Monthly provision equal to year-to-date bonuses payable to owners

Example 1

Record the monthly accrual of the owner’s bonus of $30,000.

Journal: Payroll Journal

Entry:		Debit	Credit
Account 098	Bonuses – Owners	$30,000
Account 329	Owner’s Bonuses Payable		$30,000

Example 2

Record the payment of the owner’s bonus of $30,000 that had previously been accrued. The payroll taxes accrued are $12,090 and the retirement benefit accrual is $2,400. The monthly payroll tax expense charged is $2,295 and the monthly retirement benefit expense is $600.

Journal: Payroll Journal

Entry:		Debit	Credit
Account 329	Owner’s Bonuses Payable	$30,000
Account 025-09	Payroll Taxes – General & Administrative	$2,295
Account 029-09	Retirement Benefits – General & Administrative	$600
Account 202	Cash in Bank		$18,405
Account 323	Payroll Taxes Payable		$12,090
Account 330	Retirement Benefits Payable		$2,400

Comments

A credit balance represents unpaid owners bonuses.