Question

Record adjusting journal entries for each 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 $18,000 has been incurred by the company, but is not yet paid to employees.
Interest Payable. At its December 31 year-end, the company owes $375 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 $1,000 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 and Explanation:

The Journal entries are shown below:-

1. Salaries expense Dr, $18,000

To salaries payable $18,000

(Being salaries incurred but not paid is recorded)

2. Interest expenses Dr, $375

To Interest payable $375

(Being interest accrued but not paid is recorded)

3. Interest expenses Dr, $1,000

To Interest payable $1,000

(Being interest accrued but not paid is recorded)