ACCOU-2140 Chapter Notes - Chapter 3: Income Statement
Document Summary
Accrued expenses are costs that are incurred in a period that are both unpaid and unrecorded. Accrued expenses are reported on the income statement for the period when incurred. Adjusting entries for recording accrued expenses increase the expense (income statement) account and increase a liability (balance sheet) account, as shown. This adjustment recognizes expenses in incurred in a period but not yet paid. Common examples for accrued expenses are salaries, interest, rent and taxes. We use salaries and interest to show how to adjust accounts for accrued expenses. Paul"s general employee earns per day or for a 5-day work week beginning on. Step 1: its employee is paid every 2 weeks on friday. on december 12 and 20 6 comma the wages are paid, recorded in the journal, and posted to the ledger. Step 2: the employee has earned 3 days salary by the close of business on wednesday,
