In the example, debit the interest payable account with $21.92 and the credit current liabilities account with the same amount.

Thanks to accrual basis accounting, many expenses appear on the balance sheet before money changes hands. The company records these expenses, called accrued expenses, in the period they occur. They ...

An expense account titled "Salaries Expense" is debited $10,000 at the end of December to reflect wages accrued while a corresponding "Salaries Payable" liability account is credited for $10,000.