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LESSON 9-3 Accrued Expenses

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Presentation on theme: "LESSON 9-3 Accrued Expenses"— Presentation transcript:

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

2 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

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

4 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/ 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
page 274 1 2 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
page 276 1 2 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
page 277 1 2 1. Debit the expense account. 2. Credit the liability account. LESSON 9-3

10 TERM REVIEW page 279 accrued expenses LESSON 9-3


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