The procedure for a payroll accrual requires identifying the portion of the payroll that falls after the payday but within the accounting period, and:

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The procedure for a payroll accrual requires creating an accrual entry that provides for both the expense and the liability for the unpaid payroll. This ensures that the financial statements accurately reflect the amount of payroll that has been earned but not yet paid out. Option A is incorrect because paying employees would be a cash disbursement and not part of the accrual process. Option B is incorrect because payroll is a normal, recurring cost and not unusual. Option D is incorrect because supporting notes do not replace the need for an accrual entry in the accounting records.

The Procedure for a Payroll Accrual Requires Identifying the Portion