Cash Debit 50440 Prepared Interest Debit 1560 Notes payable

Cash = Debit 50440

Prepared Interest Debit 1560

Notes payable Credit 5200

Record the adjusted for interest on the payable

Solution

interest is an expense and hence it would be debited

interest payable is a liability and hence it would be credited

therefore entry would be

Interest expense Dr. 1560

Interest Payable Cr. 1560

(to record interest payable)