Answer:
A. 1. Salaries Payable = $0
2. Salaries Payable should equal $15,500
3. Debit Salaries Expense $15,500
Credit Salaries Payable $15,500
To accrue unpaid salaries expense for the year.
B. 1. Interest Payable = $0
2. Interest Payable should equal $250
3. Debit Interest Expense $250
Credit Interest Payable $250
To accrue unpaid interest expense for the year.
C. 1. Interest Payable = $0
2. Interest Payable should equal $875
3. Debit Interest Expense $875
Credit Interest Payable $875
To accrue unpaid mortgage interest expense for the year.
Explanation:
Adjusting journal entries are used to recognize transactions and events that do not have any cash basis because they are required under the accrual basis of accounting. The accrual basis requires that transactions are recorded in the period they occur without reference to cash payment or receipt.
