For each separate case below, follow the three-step process for adjusting the ac

Question

For each separate case below, follow the three-step process for adjusting the accrued expense account at December 31. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other adjusting entries are made during the year Salaries Payable. At year-end, salaries expense of $21,000 has been incurred by the company but is not yet paid to employees Salaries payable Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal Step 3 Record the December 31 adjusting entry to get from step 1 to step 2

Explanation / Answer

a. Salaries Payable Step 1: 0 Step 2: 21000 Step 3: Accounts Debit Credit Salaries expense 21000 Salaries payable 21000 b. Interest Payable Step 1: 0 Step 2: 525 Step 3: Accounts Debit Credit Interest expense 525 Interest payable 525 c. Interest Payable Step 1: 0 Step 2: 1150 Step 3: Accounts Debit Credit Interest expense 1150 Interest payable 1150

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