The entry to record interest expense on a bank loan payable is a a. debit to interest expense and credit to note payable. b. debit to note payable and credit to interest revenue. c. debit to interest payable and credit to interest revenue. d. debit to interest expense and credit to interest payable

The entry to record interest expense on a bank loan payable is a a. debit to interest expense and credit to note payable. b. debit to note payable and credit to interest revenue. c. debit to interest payable and credit to interest revenue. d. debit to interest expense and credit to interest payable

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 15MCQ

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Question

The entry to record interest expense on a bank loan payable is a

a. debit to interest expense and credit to note payable.

b. debit to note payable and credit to interest revenue.

c. debit to interest payable and credit to interest revenue.

d. debit to interest expense and credit to interest payable.

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