In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense?
A)Ramona's Nursery purchased playground equipment on January 1 with an estimated useful life of six years.
B)On January 25,Ramona's Nursery hired a college student to drive the minibus;the new employee is to begin work in February.
C)January 31 falls on a Tuesday;salaries are paid on Friday of each week.
D)On January 31,Ramona's Nursery paid the interest owed on a note payable for January.

Question

Quizplus · Accepted Answer

Adjusting entries for accrued expenses are made to record expenses that have been incurred but not yet paid or recorded. In option C, salaries for the days leading up to January 31 have been incurred but not yet paid, since salaries are paid on Fridays. This situation requires an adjusting entry to recognize the salary expense incurred up to January 31.

In Which of the Following Situations Would an Adjusting Entry