Question

on december 31, robinson company has incurred interest expense of $4,400 on outstanding notes even though the company will not actually pay the interest until the following year. prepare the journal entry

Answer 1

To record the interest expense on outstanding notes on December 31, debit Interest Expense and credit Notes Payable.

Step-by-step explanation:

The journal entry to record the interest expense on outstanding notes on December 31 will debit Interest Expense and credit Notes Payable. Since the company will not actually pay the interest until the following year, the entry does not include a debit to Cash. The entry would look like this:

Journal Entry:

• Debit: Interest Expense ($4,400)
• Credit: Notes Payable ($4,400)