What is the journal entry for recording accrued expenses at year-end?

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Question: What is the journal entry for recording accrued expenses at year-end?

Options:

Correct Answer: Debit Expense, Credit Accounts Payable

Solution:

The correct entry is to debit Expense and credit Accounts Payable to recognize expenses incurred but not yet paid.

What is the journal entry for recording accrued expenses at year-end?

What is the journal entry for recording accrued expenses at year-end?

Step 1: Identify the expense that has been incurred but not yet paid by the end of the year.
Step 2: Determine the amount of the expense that needs to be recorded.
Step 3: Create a journal entry to reflect this expense. You will debit the Expense account to show that you have incurred an expense.
Step 4: Credit the Accounts Payable account to show that you owe this amount and have not yet paid it.
Step 5: Review the journal entry to ensure it accurately reflects the expense and the corresponding liability.

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