Accrued Telephone Expenses Journal Entry

Telephone Bill Payable Journal Entry

When the company received the telephone facilities for the period but the payment is not made for the period, then such Telephone Expense is accrued for the period and it is the Current Liability for the company to pay to the Telecom Company for the month as it is payable or outstanding due to non-payment. It is recorded in the Balance Sheet.

In that case, the following adjusting entry is recorded as shown below:

                                 Telephone Expenses a/c   XXX

                                                                      Accrued Telephone Expenses a/c   XXX

                                                   (Telephone Expenses Payable for the Month)

When the company actually paid telephone expenses, then the above entry would be reversed and paid telephone expense entry is recorded as shown below:

                                       Telephone Expenses a/c    XXX

                                                                              Cash a/c   XXX

                                                            (Paid Telephone Expenses)