The journal entry for accrued interest on a note payable includes​ ________.

Question

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Part 1
A.
a debit to Interest Expense and credit to Interest Payable
B.
a debit to Interest Expense and credit to Cash
C.
a debit to Interest Payable and credit to Cash
D.
a credit to Interest Expense and debit to Notes Payable

Answer 1

The correct answer for recording accrued interest on a note payable is:

A. a debit to Interest Expense and credit to Interest Payable.

This entry recognizes the interest that has accumulated but has not yet been paid, increasing the expense and creating a liability.