incurred at the end of the reporting period but not yet paid; also called accrued liabilities. The accrued liability is shown under current liabilities in the balance sheet. For example, assume the last payroll date was January 28. The next payroll date is February 11. For the last few days of the month (January 29-January 31) the company owes its employees $500 in salaries. The appropriate journal entry on January 31 is to debit salaries expense and credit salaries payable for $500.