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Income Statement
05-08-2009, 10:24 PM
Post: #1
Income Statement
Hi there, i have totally forget some basic concepts for my income statement and was just wondering if anyone can give me some advice and help.
If i have wages and salaries of 5000 on my trial balance,
and have 2000 outstanding on the date of my income statement, do i add them together as the expense as they represent the expense for the year that should have been paid?
obvioulsly its going to be a current liability in my balance sheet, but i was just wondering about this part first,
thanks chris
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05-09-2009, 06:27 AM
Post: #2
 
if the 2000 is not in ur trial balance (unrecorded) then yes..

wages and salaries Debit by 2000
Salary payable/other payable credit by 2000

if its recorded in liabilites and not recorded in salaries.......then ur trial balance must not balance..
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