CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 21-2LESSON 21-2

Accrued Expenses

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LESSON 21-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

ANALYZING AN ADJUSTMENT FOR ANALYZING AN ADJUSTMENT FOR ACCRUED INTEREST EXPENSEACCRUED INTEREST EXPENSE page 622

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2. Credit Interest Payable.

1. Debit Interest Expense.

3. Record the adjusting entry.

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LESSON 21-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

POSTING AN ADJUSTING ENTRY FOR POSTING AN ADJUSTING ENTRY FOR ACCRUED INTEREST EXPENSEACCRUED INTEREST EXPENSE page 623

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2. Post the credit.

1. Post the debit.

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LESSON 21-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

REVERSING ENTRY FOR ACCRUED REVERSING ENTRY FOR ACCRUED INTEREST EXPENSEINTEREST EXPENSE

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page 624

1. Debit Interest Payable.

2. Credit Interest Expense.

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LESSON 21-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

PAYING A NOTE PAYABLE SIGNED IN A PAYING A NOTE PAYABLE SIGNED IN A PREVIOUS FISCAL PERIODPREVIOUS FISCAL PERIOD

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44

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page 625

March 1. Paid cash for maturity value of the September 2 note: principal, $10,000.00, plus interest, $600.00; total, $10,600.00. Check No. 916.

1. Debit for the principal of the note.

2. Debit for the total interest.

3. Credit for the maturity value of the note.

4. Post the amounts in the General columns.

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LESSON 21-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

TERMS REVIEWTERMS REVIEW

accrued expenses accrued interest expense

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