your business may hire a cleaning crew quarterly to wax the floors. If the crew visits in April but bills you in May with a June due date, the expense is still attributed to April. An accrued expense journal entry requires
end of December, Jen has incurred 15 days worth of electrical expenses but won’t actually pay them until January 15th. These 15 days worth of utility expense must be accrued at the end of the year. Jen’s Fashion Boutique would accrue its utilities in this accrued expense journal entry....
Another example of a general journal entry is the adjusting entry to accrue interest on a bank loan. This journal entry will debit Interest Expense and will credit Interest Payable. Related Questions What is a special journal? What is a recurring journal entry? What is the accounting journal...
Many times it may not be necessary to accrue an expense, but it can be directly booked against an expense Account on payment. For example, a travel allowance or a telephone bill. You can directly debit Telephone Expense (instead of your telephone company) and credit your Bank on payment. ...
Dr: Financing expense Cr: Accounts receivables/note receivables Inventory and cost of goods sold Journal Entry ➢Closing entries to record COGS – Periodic method Dr: COGS Dr: Inventory, ending Dr: Purchase allowance Dr: Purchase returns
The journal entry to accrue compensated absences would adjust the liability for vacation payable to the balance computed in the spreadsheet. For example, Exhibit 1 shows estimated vacation pay equal to $9,600. Suppose this company already has a liability for vacation payable equal to $6,...
And on January 3rd, the Mixing Department production manager submitted a raw materials requisition order to the inventory manager for 500 pounds of flour and 375 pounds of butter—enough raw materials to mix up a batch of 750 pie crusts. This results in a journal entry that moves the cost ...
In this case, you can use the accrual factor (for example, 25 for 25%) to accrue a portion of payroll expenses in the previous month and defer the expense in the following month. Enter the Absolute Override Accounting The date that the payroll accounting journals are created. This is the...
a transition pay period where all timecards are entered with a work date equal to the pay period end date. In this case, you can use the accrual factor (for example, 25 for 25%) to accrue a portion of payroll expenses in the previous month and defer the expense in the following ...
the accrued interest expense must be recorded on the December income statement, and the liability for the interest payable must be reported on the December balance sheet. The adjusting entry will debit interest expense and credit interest payable for the amount of interest from Dec. 1 to Dec. ...