For each separate case below, follow the three-step process for adjusting the accrued expense account at December 31. Assume no other adjusting entries are made during the year.

a. Salaries Payable. At year-end, salaries expense of $5,000 has been incurred by the company but is not yet paid to employees.

b. Interest Payable. At its December 31 year-end, the company holds a mortgage payable that has incurred $1,000 in annual interest that is neither recorded nor paid. The company will pay the interest on January 3 of the next year.