g. laughter legal services has incurred $900 of interest expense on a $1,450 interest payment due on january…
g. laughter legal services has incurred $900 of interest expense on a $1,450 interest payment due on january 15. date accounts and explanation debit credit december 31
Answer
Explanation:
Step1: Identify the accounts involved
Interest Expense is an expense account and Interest Payable is a liability account.
Step2: Determine the debit - credit rules
Expenses increase with a debit and liabilities increase with a credit.
Step3: Record the journal entry
On December 31, to record the accrued interest expense, we debit Interest Expense for the amount of interest incurred ($900) and credit Interest Payable for the same amount.
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Interest Expense | $900 | |
| Interest Payable | $900 |
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| December 31 | Interest Expense | $900 | |
| Interest Payable | $900 |