Accrued Expense Adjusting Entries Examples Help

Accrued Expense Adjusting Entries Examples, Samples, Illustrations, Calculation Help Online


Finding problems in understanding accrued expenses. Looking for Accrued Expense Adjusting Entries Examples, Samples, Illustrations, Calculation to do your assignment, homework or project, you are at the right place.

What is Accrued Expense Adjusting Entries?

Accrued expense is that expense which a concern has incurred and whose benefit has been consumed during the accounting period but has not yet been paid. According to the accrual concept of accounting, accrued expenses has to be shown in the final accounts otherwise profit will be overstated.
When accrued expense is recorded it is treated as a current liability. Accrued expense is incurred with regards to salaries and wages, rent, etc. Adjusting entry is passed in the books of accounts to show effect of transaction that should have been recorded in the books of accounts but are not recorded. Journal entries are passed to effect the required adjustments are known as adjusting entries.

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Accrued Expense Adjusting Entries Explanation

Let us understand the concept of adjusting entries with help of an example illustrating accrued salaries.
Example: Employees receive total salaries and wages of $10000 for a five-day work week, or $2000 per day. So, adjusting entry on Oct,31 to record accrual salaries will be as follows
Oct.31 Salaries and Wages Expense $2000
Salaries and Wages Payable $2000
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