Another example of a general journal entry is the adjusting entry to accrue interest on a bank loan. This journal entry will debit Interest Expense and will credit Interest Payable. Related Questions What is a special journal? What is a recurring journal entry? What is the accounting journal...
By the way, the journal entry for repaying the loan is actually very similar to the journal entry for paying off a creditor inour previous lesson on accounts payable: As you can see in this journal entry, wecreditedthebank account, just like in the journal entry to repay the loan. That...
The figures from the above examples are based on the figures in theLoan Amortizationimage in the next section about loan interest. loan interest payable journal entry Adding interest to the loan account Debit: Loan Interest(expenseaccount)Credit: Loan(liability account) Interest on Bank Loan Journa...
2. Journal Entry for a Liability (Debt)A liability is simply a debt. In this transaction a business receives some asset and owes someone else for this. In this particular example the business receives a loan.Click here for the full Liability Example Lesson....
10 Steps for Preparing a Journal Entry Identify the Transaction: Determine the transaction that needs to be recorded. Transactions can include sales, purchases, expenses, interest payments, or any financial activity that impacts the business.
Interest earned on bank accounts Miscellaneous bank fees Loan payments Electronic deposits and withdrawals Related Questions What is a journal entry? What is a special journal? What is a recurring journal entry? What is the accounting journal entry for depreciation? Can you help me to underst...
a book of original entry in which information from documents and vouchers such as invoices and cheque stubs is entered, prior to entering or ‘posting’ this information toDOUBLE-ENTRY ACCOUNTSin theLEDGER. For example, the sales day book records invoices issued to customers in order of date ...
Entry for Investors Another common way for new companies to generate an inflow of cash is from investors who want to purchase an ownership interest in the company. This also includes the cash you contribute to the company with your personal funds. Regardless of who the investor is, the credi...
Journalentry_英语学习_外语学习_教育专区 标红的部分分录不确定是否完全正确 A 8.The company purchases land by paying half in cash and signing a note payable for the other C
Example of an Adjusting Journal Entry For example, a company that has a fiscal year ending Dec. 31 takes out a loan from the bank on Dec. 1. The terms of the loan indicate that interest payments are to be made every three months. In this case, the company’s first interest payment ...