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In accrual accounting, expenses are recorded as you get them, so say receive your Utilities Bill due the next month, you record it immediately.
For example I have a $500 Utility Bill it's June 28th, the bill isn't due until say July 15th, the entry would be;
Utility Expense (debit) $500
Utilities Payable (credit) $500
On July 15th when the bill is paid you adjust the entry as follows;
Utilities Payable (debit) $500
Cash (credit) $500
In Cash Basis Accounting the expense isn't recorded on the books until the bill is actually paid and the entry would be;
Utilities Expense (debit) $500
Cash (credit) $500
Wiki User
∙ 13y ago
Wiki User
∙ 9y agodebit expense
credit cash
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debit cash / bank / accounts payablecredit expense account
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Debit Accrued Interest Expense Credit Accrued Interest Payable
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debit: expense account credit: account payable (vendor)
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How do you record a journal entry to reverse the expense booked?
debit cash / bank / accounts payablecredit expense account
What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
What is the journal entry to record interest expense not yet paid?
debit interest expensescredit interest payable
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debit business expensescredit owner capital account
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debit: expense account credit: account payable (vendor)
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Debit is to depreciation expense.
What is the journal entry to record interest expense and bond premium?
debit interest expensedebit bond premiumcredit cash
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expense
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debit payroll expensescredit cash / bank
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debit franchise feecredit cash /bank
Which journal entry records payment for supplies?
The journal entry to record payment for supplies would involve crediting the cash account and debiting the supplies expense account.
Why you post journal entry?
Journal entry is the basic transaction to record the business transaction and without journal entry no record can be maintained.
