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Examples of other payables include liabilities to pay wages and salaries, amounts due to the tax office for payroll taxes and sales tax, payable for items with non-trade purpose etc.
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A business purchased equipment by issuing a one-year note. Recording the transaction requires an asset to be debited and long-term liability to be credited.
Accrued expenses are expenses which relate to an accounting period but have not been paid.
A company borrows $88,500 on September 1, 2014 from the bank by signing an $88,500, 6% note, due August 31, 2015. The accrued interest on December 31, 2014 should be 5310.
Accrued expenses are charged against the profit and therefore they are shown in the income statement.
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