Which Of The Following Is An Example Of An Accrued Expense Adjusting Entry

Accrued Salaries / Salaried Payable / Outstanding Salaries

Recording The Amount Of Salaries Expense / Wages Expense For Employees That Is Not Paid Yet

When the employees performed their services during the month but still the payment is not paid to employees, then it creates a Liability (Accrued Expense) for the company / corporation to pay to employees for the services performed during the accounting period.

In such case, the adjusting entry to record, according to Accrual Basis of Accounting, is shown below:

Wages Expense a/c / Salaries Expense a/c  XXX

                                                   Wages / Salaries Payable a/c / Outstanding Wages / Salaries a/c  XXX

 

                                                         (Wages / Salaries Due For The Period)