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sharisyam
Jan 2, 2012, 12:50 AM
I want to prepare a journal entry regarding car loan interest

pready
Jan 2, 2012, 08:02 AM
To acrue the interest:
Debit Interest Expense for the amount of interest
Credit Interest Payable for the same amount

When the interest is Paid:
Debit Interest Payable for the amount of interest paid
Credit Cash for the same amount