Journaling Accrued Salaries Expenses
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matching principle
aims to record expenses in the same accounting period as the revenues that are earned as a result of these expenses.
Paid Salaries
Assets (Cash) decrease, Equity decreases (as Sal Exp. goes up) Debit Salaries Exp.; Credit Cash
To record payment of accrued expense
Assets (Cash) decrease, Liab (Sal Payable) decrease DB Salaries Payable; CR Cash
To accrue salaries expense
Liabilities (Salaries Payable) increase, Equity decreases (as Sal Exp. goes up)Debit Salaries Exp.; Credit Salaries Payable
Accrued Expenses
must be reported on the income statement of the period when incurred.
