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. At year-end, salaries expense of $15,500 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: Determine what the current account balance should equal. Step 3: Racord the December 31 adusting entry to get from step 1 to step 2 b. At its December 31 year-end, the company owes $250 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. e to search F5 FB