AccountingBLOCK - Accounting Forums - View Single Post - Expense discovered after month-end close

ZahiD · 06-26-2008, 04:32 PM

The questionis, did you already accrue the expense in the first place?

For accruing an expense like a phone bill... the following should be done...

Before receiving the phone bill:

Dr. Phone Expense
Cr. Accounts payable

After the bill arrives:

Dr. Accounts payable
Cr. Cash

06-26-2008, 04:32 PM	#2 (permalink)
ZahiD Status: Owner/Administrator Join Date: Mar 2008 Location: Berkeley, CA Posts: 201	The questionis, did you already accrue the expense in the first place? For accruing an expense like a phone bill... the following should be done... Before receiving the phone bill: Dr. Phone Expense Cr. Accounts payable After the bill arrives: Dr. Accounts payable Cr. Cash __________________ Zahid, CTEC Registered Tax Preparer