The company has abank loan and has incurred (but not recorded) interest expense of $2,5000 for the year ended December 31, 2008. The company must pay the interest on January 2, 2008
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The company has abank loan and has incurred (but not recorded) interest expense of $2,5000 for the year ended December 31, 2008. The company must pay the interest on January 2, 2008
The journal entry will be:
Debit Interest expense for the amount
Credit Interest Payable for the amount
The journal entry to recod the payment will be:
Debit Interest Payable for the amount
Credit Cash for the amount
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