Question

Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded.

Answer 1

The Journal entry for the Interest expense on the $30,000 loan will include a debit to Interest Expense account and a credit the Accrued Interest Payable account.

What is an Interest expense?

This refers to cost incurred for borrowed funds such as on bonds, loans, convertible debt etc.

The effect on this on the journal entry is that its increases the expense and payable accounts.

Therefore, the record will include a debit to Interest Expense account and a credit the Accrued Interest Payable account.

Read more about Interest expense

brainly.com/question/12553420

#SPJ1