1. LESSON 9-3 Accrued Expenses
12/3/2018
LESSON 9-3
Accrued Expenses
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2. JOURNALIZING ACCRUED INTEREST EXPENSE
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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

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

4. PAYMENT OF NOTE AT MATURITY
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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/
1/1 Bal
1. Calculate total interest due at maturity. 2
2. Debit Notes Payable, $7,
3. Debit Interest Expense, $ (Credit Cash, $7, ) 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

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

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

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

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

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

10. TERM REVIEW
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accrued expenses
LESSON 9-3