Question

Record adjusting journal entries 100 of the following for year ended December 31
Assume no other adjusting entries are made during the year

Salaries Payable.: At year-end, salaries expense of $24,000 has been incurred by the company, but is not yet paid to employees.
Interest Payable: At its December 31 year-end, the company owes $675 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year.
Interest Payable: At its December 31 year-end, the company holds a mortgage payable that has incurred $1,300 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year.

Answer 1

Answer:

Salaries Payable :

Salaries Expense $24,000 (debit)

Salaries Payable $24,000 (credit)

Interest Payable:

Interest Expense $675 (debit)

Interest Payable $675 (credit)

Interest Payable:

Interest Expense $1,300 (debit)

Interest Payable $1,300 (credit)

Explanation:

When an amount is incurred but is deferred to another period for payment, a liability is recognized.

A liability is a present legal obligation arising from a past event, the settlement of which will result in outflow of economic benefits (Cash) from the entity.