QS 3-12 Accrued expenses adjustments LO P1 For each separate case below, follow the three-step process for adjusting the accrued expense account at December 31 Step 1: Determine what the current account balance equals Step 2. Determine what the current account balance should equal Step 3. Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Salaries Payable. At year-end, salaries expense of 517.500 has been incurred by the company but is not yet paid to employees Salaries payable Step 1: Determine what the current account balance equals Step 2: Dermine what the current account balance should equal Step 3: Record the December 31 w ing only to out from step 1 to step 2 b. Interest Payable. At its December 31 year-end, the company owes $350 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year. Interest payable Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adjusting entry to get from step 1 to step 2 c. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $975 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. C. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $975 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. Interest payable Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2