An adjusting entry to accrue expenses is necessary when there are unrecorded expenses and liabilities that apply to a given accounting period. These expenses may include wages for work performed in the current accounting period but not paid until the following accounting period and also the accumulat...
Accordingly an adjusting entry is made to debit the appropriate expense account and to credit a liability account such as Accrued Expenses Payable or Accounts Payable. To learn more, see Explanation of Adjusting Entries. Related Q&A Is the reversal of a previous year's accrued expense permanent?
an adjusting journal entry is recorded at the end of the accounting period for the last month’s expense. The adjusting entry will be dated Dec. 31 and will have a debit to the salary expenses account on the income statement and a credit to the salaries payable account on the balance shee...
an adjusting journal entry is recorded at the end of the accounting period for the last month’s expense. The adjusting entry will be dated Dec. 31 and will have a debit to the salary expenses account on the income statement and a credit to the salaries payable account on the balance shee...
Expenses:A cost incurred in completing a transaction that results in revenue production, the creation of an asset, a change in obligation, or the raising of capital, among other outcomes, is known as an expense.Answer and Explanation: The adjusting entry to record accrued expense includes expe...
thebooks.Everyadjustingentryforaccruedexpensesdebitsanexpense account,increasingexpensesontheincomestatementandreducingnet income,andcreditsapayableaccount,increasingliabilitiesonthebalance sheet. HowtoRecordAccruedExpenses Thegeneralentrytorecordanaccruedexpenseis: ...
内容提示: Section 3ACCR UE D E XPE NSE S (ACCR UE D L IABIL IT IE S)IntroductionAccrued expenses are expenses that have been incurred, but not yet paid for.To put it another way, an accrued expense is paid after being recorded onthe books. Every adjusting entry for accrued expenses...
Accrued Expenses: Accrued expenses are typically recorded using an adjusting entry because these expenses have not been paid in cash on year-end but hey have been incurred in the current accounting period. Answer and Explanation: Note that w...
Advantage of Accrued Expense Journal entry Journal entry for accrued expenses comes into play when there is no expense documentation. In such a case, a journal entry is made to recognize the accrued expense in the income statement. Also, an adjusting entry is made to record the expense as a...
An expense incurred but not yet paid. A firm incurs certain expenses such as wages, interest, and taxes that are paid only periodically. From the time expenses are incurred until the date they are paid, expenses accrue in a firm's balance sheet. ...