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TRAVEL, EXPENSE REIMBURSEMENT AND ENTERTAINMENT POLICY GENERAL This Travel, Expense Reimbursement and Entertainment Policy (Policy) provides guidelines and establishes procedures for employees incurring

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Let#39’s continue on now we've talked aboutprepaids we×39’ve talked about the unearned revenue is a liability account just like prepaid expense let's put this theorem is actually an asset accountokaynow we×39’re going to look at accrued expenses the best example here is salaries okay let's use the example that×39’ve got a calendar right here and let'SUSE an example that we earn a hundred dollars a months#39’re the only person that works for this one business okay, and we earned hundred dollars I think I said per month per day okay, so I'd be a hundred dollars here we earn $100 here $100 here undeveloped, and we get paid every two weeks so this December 29 30th 31st and this would be January for a second and next money we the 5th 6th 7th 8th months I'm just going to put in $100 becausethat'’s how much we ea, Anand we get adhere#39’s payday right here we get pain there 9th okay and we#39’ll get paid our full salary our full thousand dollars $100times 10 is $1,000well we×39’redoing adjustments at December31st this business needs to recognize that they owe us how much money okay well if December 31stthey owe us 3 days worth of work or $300so the business is going to recognize wage expense of $300 and then they'redoing to record a wage payable of $300okay so that×39’re going to match up the expense in the right time trade when waste expense incurred the expense was curd in December the inner knowledge was incurred for December in the current year now the other 700 is incurred the next year okay, but we need to make sure that we did in our books at the nighttime through it, so this business risk needs to record wage expense of $300 and wages payable at 300 saying that, and we owe them, so we know that they haven't'paid this yet okay now it's January 7th of the next year okay and that#39’re paying out thefull thousand dollars that they owe us okay they're paying out the full thousand dollars well since that×39;repaying it out this payable means to be eliminated right they don't owe it anymore because IN#39’d be set on January seventh they're paying it out you woman and said that long is January sevenths we#39’re going to get rid of this payable of $300now how much wage expense does the business incur in this year the second year well one two three four five six seven this is for January those 7v3wording December the seven are in January, so we're going to have wage expense of seven hundred, so there are two debits we're going to eliminate that payable, and now we're going to have expense of seven hundred dollars in the next year now we need a credit this haste balance couldn't have one thousand dollarswhat'’s that credit going to be welted he questions on is what are they going to pay you they're paying you cash they'reviving you the cash, so that's what the credit is we need to reduce the cash in this business so to reduce the cash we credit the cash so notice how everything works out just perfectly here December 31st we have expense of 300 and...

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