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    lvycravsit's Avatar
    lvycravsit Posts: 2, Reputation: 1
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    #1

    Jan 11, 2009, 07:33 PM
    How to enter interest paid in journal entry
    Tyring to journal interest paid on bonds issued. I think I debit the bond interest paid, but then do I credit cash? For example, on 12/31, I have debit of Bond Interest Expense and a credit of Bond Interest Payable. If the interest is paid on 1/1, how do I journal the entry? I am thinking a Bond Interest Payable debit and then a Cash credit for an equal amount? Or should it be the original amount of the bonds + the amount of interest paid?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 12, 2009, 01:22 PM

    The journal entry is:
    Debit Interest Payable for the amount
    Credit Cash for the amount paid
    deo77's Avatar
    deo77 Posts: 1, Reputation: 1
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    #3

    Nov 5, 2011, 10:56 PM
    Debit interest payable
    Credit interest expense

    Since it is not paid yet
    And

    Dr interest expense
    Cr bank

    After its paid

    I think
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