Journaling Accrued Salaries Expenses
Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!
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.
