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 A
The reversing entry for Salaries is: a. debit Salaries Expense; credit Salaries Payable. b. debit Salaries Expenses; credit Accounts Payable. c. debit Salaries Payable; credit Salaries Expense. d. debit Salaries Payable; credit Income Su...
Salaries are not paid to employees until the end of the payment period. At the end of each recording period, a company should properly estimate the dollar amount for each of its accrued expenses, and then record it as an expense account with a corresponding payable/accrued expense liability. ...
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 ...
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...
The interest owed is booked as a $500 debit to interest expense on Company ABC’s income statement and a $500 credit to interest payable on itsbalance sheet. The interest expense, in this case, is an accrued expense and accrued interest. When it’s paid, Company ABC will credit its cas...
For example, a company owing $10,000 in salaries at the end of December would record: Adebitto the salaries expense account ($10,000). Acreditto the accrued liabilities account ($10,000). When the payment is made in January, the entry is reversed: ...