The journal entry to record accrued interest on a short-term note payable includes a debit to: A. Interest Payable and a credit to Notes Payable. B. Interest Expense and a credit to Cash C. Interest Expense and a credit to Interest Payable D. Interest Payable and a credit to Cash.

The journal entry to record accrued interest on a short-term note payable includes a debit to: A. Interest Payable and a credit to Notes Payable. B. Interest Expense and a credit to Cash C. Interest Expense and a credit to Interest Payable D. Interest Payable and a credit to Cash.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...

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Question

(32) The journal entry to record accrued interest on a short-term note payable includes a debit to:

A. Interest Payable and a credit to Notes Payable.

B. Interest Expense and a credit to Cash

C. Interest Expense and a credit to Interest Payable

D. Interest Payable and a credit to Cash.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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