LESSON 9-3 Accrued Expenses 8/3/2019 LESSON 9-3 Accrued Expenses RED

JOURNALIZING ACCRUED INTEREST EXPENSE page 272 2 3 Principal Interest Rate Time as Fraction of Year Interest for 15 Days ´ = $7,500.00 ´ 10% = $31.25 15 360 1 1. Determine the amount of accrued interest. 2. Debit the expense account. 3. Credit the liability account. LESSON 9-3

REVERSING ENTRY FOR ACCRUED INTEREST page 273 1 2 1. Debit the liability account. 2. Credit the expense account. LESSON 9-3

PAYMENT OF NOTE AT MATURITY page 273 Principal Interest Rate Time as Fraction of Year Total Interest Due ´ = $7,500.00 ´ 10% = $125.00 60 360 1 Notes Payable 2/13 7,500.00 1/1 Bal. 7,500.00 Interest Expense 2/13 125.00 1/1 Bal. 31.25 1. Calculate total interest due at maturity. 2 2. Debit Notes Payable, $7,500.00. 3. Debit Interest Expense, $125.00. (Credit Cash, $7,625.00.) 3 4. Determine the interest expense for the current period. Interest Expense Recorded in Previous Period Total Interest Expense for the Note Interest Expense Recorded in Current Period – = 4 $125.00 – = $93.75 $31.25 LESSON 9-3

JOURNALIZING ACCRUED SALARY EXPENSE page 274 1 2 1. Debit the expense accounts. 2. Credit the liability accounts. LESSON 9-3

REVERSING ENTRY FOR ACCRUED SALARY page 275 1 2 1. Debit the liability accounts. 2. Credit the expense accounts. LESSON 9-3

JOURNALIZING ACCRUED EMPLOYER PAYROLL TAXES EXPENSE page 276 1 2 1. Debit the expense account. 2. Credit the liability accounts. LESSON 9-3

REVERSING ENTRY FOR ACCRUED EMPLOYER PAYROLL TAXES page 276 1 2 1. Debit the liability accounts. 2. Credit the expense account. LESSON 9-3

JOURNALIZING ACCRUED FEDERAL INCOME TAX EXPENSE page 277 1 2 1. Debit the expense account. 2. Credit the liability account. LESSON 9-3

TERM REVIEW page 279 accrued expenses LESSON 9-3