Which of the following would be the adjusting entry to record accrued interest at the end of an accounting period?
A)Dr.Interest expense, Cr.Cash
B)Dr.Interest expense, Cr.Interest payable
C)Dr.Interest payable, Cr.Interest income
D)Dr.Interest payable, Cr.Cash

Question

Quizplus · Accepted Answer

The adjusting entry to record accrued interest at the end of an accounting period requires an increase in the interest expense account and a corresponding increase in the interest payable account. This is because interest expense has been earned but not yet paid or recorded, so it needs to be recognized as an expense through an adjusting entry. The entry should appear as follows: Dr. Interest expense, Cr. Interest payable.

Which of the Following Would Be the Adjusting Entry to Record