The adjusting entry for an accrued expense updates the Wages Expense and Wages Payable balances so they are accurate at the end of the month. For accrued expenses, the journal entry would involve a debit to the expense account and a credit to the accounts payable account. This…
Finding out your owner’s equity can be helpful in determining your financial position—you’ll be able to compare the owner's equity from one period to another to figure out whether you are losing or gaining value. Owner’s equity is typically recorded at the end of the business’s accounting period.…