Accounting Chapter 3 Notes

Building interest expense 100 100 utilities expense

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Unformatted text preview: oyee salary. b/c the salary expense grows as the employee works, so the expense is said to accrue. Catherine Liou Accounting 121 Feb 17, 2013 Accruing Interest Expense - Borrowing money creates a liability for a Note payable. If a company on May 1, 2013 borrows $20,000 from the bank, then it has to pay a 100 dollar interest expense in May 31st. The way it will look on the journal" *Note the dates May 1 Cash (A+) Note Payable (L+) Borrowed Money 20,000 20,000 May 31 Interest Expense (E+) Interest Payable (L+) To accrue interest expense 100 100 After Adjusting, the interest expense and interest payable will have the following post " EXPENSE LIABILITIES Interest Expense Intere...
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