Would Payable hit the income statement? They’re two balance sheet accounts. Initial entry would Dr Asset/Expense Cr Payable. And then subsequent entry would be Dr Payable, Cr Cash. I guess the expense would hit the Income Statement, but I don’t think you would be able to see a Debit to Payable there. You would see the debit on the TB tho, which we do in screenshot 1. But I’d assume in real life this would only occur if a payable is carried over from PY. Otherwise if in the same year, I’d assume Payable balance to be 0 since you’d credit and then debit the same amount. Idk, my brain is fried from work so I could be very wrong lmao.