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

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter7: Credit Cards And Consumer Loans

Section7.2: Managing Credit Cards Wisely

Problem 1CC

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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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