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 income.
C)debit to interest payable and credit to interest income.
D)debit to interest expense and credit to interest payable.

Question

Quizplus · Accepted Answer

The correct entry to record interest expense on a bank loan payable involves debiting (increasing) interest expense, which represents the cost of borrowing for the period, and crediting (increasing) interest payable, which represents the liability for the interest that has accrued but has not yet been paid.

The Entry to Record Interest Expense on a Bank Loan