on-december-31-2023-xyz-company-accrues-interest-payable-of-3000-for-its-bonds-w

Question

On December 31, 2023, XYZ Company accrues interest payable of $3,000 for its bonds. What is the journal entry on December 31, and what is the entry on January 1, 2024, when the interest is paid?

Accepted Answer

December 31: Debit Interest Expense $3,000, Credit Interest Payable $3,000; January 1: Debit Interest Payable $3,000, Credit Cash $3,000.

Answer

December 31: Debit Interest Payable $3,000, Credit Interest Expense $3,000; January 1: Debit Cash $3,000, Credit Interest Payable $3,000.

Answer

December 31: Debit Cash $3,000, Credit Interest Expense $3,000; January 1: Debit Interest Expense $3,000, Credit Interest Payable $3,000.

Answer

December 31: Debit Interest Expense $3,000, Credit Cash $3,000; January 1: Debit Interest Payable $3,000, Credit Interest Expense $3,000.

On December 31, 2023, XYZ Company accrues interest payable of \$3,000 for its bonds. What is the journal entry on December 31, and what is the entry on January 1, 2024, when the interest is paid?