1 Help Assume \( \& \) no other adjusting entries are made during the year. a. Salaries Payable. At year-end, salaries expense of \( \$ 17,500 \) has been incurred by the company, but is not yet paid to employees b. Interest Payable. At its December 31 year-end, the company owes \( \$ 350 \) of interest on a loan. That interest will not be paid until sometime in January 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

When recording salaries payable at year-end, you would increase your Salaries Expense account and create a corresponding liability by crediting Salaries Payable. This ensures your financial statements present an accurate picture of what the company owes its employees, aligning with the accrual accounting principle. For the interest payable scenarios, you would similarly recognize the incurred interest by debiting Interest Expense and crediting Interest Payable for both the loan interest ($350) and the mortgage interest ($975). This practice is essential for properly reflecting the company’s financial obligations and ensuring that the financial statements comply with accounting standards.