To accurately reflect annual bonus in monthly net worth calculation, the following rule of monthly bonus accrual is adopted:

- Monthly accrual amount equals to 6% of annual base salary divided by 12, rounded to the nearest $10. This is a conservative estimate of monthly bonus after income-tax effect.
- Entry will be made on the first calendar day of every month to "Payment Adjustment" account.
- When annual bonus is paid in payroll, a debit entry will be made to the "Payment Adjustment" account as a transfer to the payroll transaction. Any excessive bonus received will show in the normal payroll entry. Any excessive bonus accrual will be shown as a one-time journal entry as "Excessive Bonus Accrual" expense.

The rule will apply starting October 2003. All previous months will not be restated.