Accrued Interest Journal Entry
Employees earn wages but they are paid. Its applicable to both the. Accounting Journal Entries Examples Bookkeeping Templates Accounting Career Accounting Basics The company would record the following journal entry. . This journal entry of the 2500 accrued interest is necessary at the end of our accounting period of 2021. Interest expense per month 10000. Interest expense 15 days 5000. When a company incurs expenses while the payment has not been made the journal entry for such accrued expenses shall be recorded as follow. If this journal entry is not made our total expenses on the income statement as well as total liabilities on the balance sheet will be understated by 2500 for the 2021 financial statements. The company needs to record interest expense from 15 th 30 th June which is the date from getting loan to the month-end. It is part of the adjusting entries in the accounting cycle that each accountan