Bigwin Inc had a loan outstanding during the month, and at the end of the month it paid interest expense of $200.How would the event be recorded?

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Paying interest on a loan results in a decrease in cash (as the payment is made) and an increase in interest expense (reflecting the cost of borrowing for the period). The principal amount of the loan payable is not affected by interest payments.

Bigwin Inc Had a Loan Outstanding During the Month, and at the End