Asked by andrew cooke on May 12, 2024
Verified
An example of an adjusting entry for an accrued expense item using the QBO journal is:
A) Debit Credit Interest payable $1,000 Interest expense $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Interest payable } &\$ 1,000\\\text { Interest expense } & &\$ 1,000 & \\\end{array} Interest payable Interest expense Debit $1,000 Credit $1,000
B) Debit Credit Interest expense $1,000 Interest payable $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Interest expense } &\$ 1,000\\\text { Interest payable } & &\$ 1,000 & \\\end{array} Interest expense Interest payable Debit $1,000 Credit $1,000
C) Debit Credit Interest receivable $1,000 Interest revenue $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Interest receivable } &\$ 1,000\\\text { Interest revenue } & &\$ 1,000 & \\\end{array} Interest receivable Interest revenue Debit $1,000 Credit $1,000
D) Debit Credit Interest revenue $1,000 Interest receivable $1,000\begin{array} { l c c } &\text { Debit } & \text { Credit } \\\text { Interest revenue } &\$ 1,000\\\text { Interest receivable } & &\$ 1,000 & \\\end{array} Interest revenue Interest receivable Debit $1,000 Credit $1,000
Accrued Expense
Expenses that are recognized on the books before they have been paid, reflecting costs incurred during a particular period.
Adjusting Entry
An accounting record made to allocate income and expenditures to the appropriate accounting periods.
Interest Payable
Accrued interest that a company owes to its creditors or on its debts but has not yet paid.
- Know how to make specific types of adjusting entries for accrued expenses and prepaids in QBO.
Verified Answer
(N
(K12_HN) Nguyen Thi LeMay 19, 2024
Final Answer :
B
Explanation :
Accrued expenses are recognized by debiting the expense account to reflect the incurred expense and crediting a payable account to acknowledge the obligation. Option B correctly shows the adjustment for an accrued interest expense by debiting Interest Expense and crediting Interest Payable.
Learning Objectives
- Know how to make specific types of adjusting entries for accrued expenses and prepaids in QBO.