As a result, the accrued expense balance increases from the unpaid employee wages caused by the timing mismatch. Examples of Accrued Expenses Payroll (i.e. Salaries) Utility Bills (HVAC) Rent Accrued Interest Accrued Taxes Accrued Expense Journal Entry: Debit or Credit If an accrued expense is ...
Answer to: Debit salaries expense & Credit salaries payable is used to record. a. Accrued Revenue. b. Unearned Revenue. c. Accrued Expense. d...
Q3. Is accrued expense a credit or debit? Answer:The generally accepted accounting principle is that accrued expense should be recorded as debits. This is because when an expense is incurred, it represents a decrease in the company’s assets. However, some accountants argue that it should be ...
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...
Accrued salaries refers tothe amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them. ... The accrued salaries entry is a debit to the compensation (or salaries) expense account, and a credit to the accrued ...
In thereporting periodthat the cash is paid, the company records a debit in the prepaid asset account and a credit in cash. In the later reporting period when the service is used or consumed, the firm will record a debit in expense and a credit to the prepaid asset. ...
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...
Debit salaries expense & Credit salaries payable is used to record. a. Accrued Revenue. b. Unearned Revenue. c. Accrued Expense. d. Prepaid Expense. One part of an adjusting entry is given below: 1. Unearned Revenue is debite...
Companies recognize their payables on the balance sheet when they purchase goods or services on credit. This requires a double entry on the general ledger: A credit to the company’s accounts payable upon receipt of the invoice An offsetting debit under the expense account for the ...
A debit to the salaries expense account ($10,000). A credit to the accrued liabilities account ($10,000).When the payment is made in January, the entry is reversed:A debit to accrued liabilities ($10,000). A credit to cash ($10,000)....