1. Chapter 24 Accounting for Accrued Revenue and Expenses

2. Accrued Revenue Recorded by an adjusting entry at the end of a fiscal period. This increases the accrued revenue account, which is another revenue account and also increases the accrued revenue receivable account, which is an asset account.

3. Adjusting Entry for Accrued Interest Income Accrued Interest Income is interest earned but not yet received. An adjusting entry is needed to record the amount of interest earned to date. Interest Receivable is going to be debited and Interest Income is going to be credited.

4. Closing Entry for Interest Income Information needed to record closing entries is obtained from the Income Statement columns of a work sheet. Interest Income is closed to the income summary account.

5. Reversing Entry for Accrued Interest Income A reversing entry is made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period. Opposite of adjusting entries. Interest Income is going to be debited and Interest Receivable is going to be credited.

6. Accrued Expenses Recorded by an adjusting entry at the end of a fiscal period. This increases the accrued expense account, which is another expense account and also increases the accrued expense payable account, which is a liability account.

7. Adjusting Entry for Accrued Interest Expense Accrued Interest Expense is interest incurred but not yet paid. An adjusting entry is needed to record the amount of interest expense to date. Interest Expense is going to be debited and Interest Payable is going to be credited.

8. Closing Entry for Interest Expense Information needed to record closing entries is obtained from the Income Statement columns of a work sheet. Interest Expense is closed to the income summary account.

9. Reversing Entry for Accrued Interest Expense Necessary to reverse the adjusting entry recorded in the previous fiscal period. Interest Payable is going to be debited and Interest Expense is going to be credited.