Question

the company has a bank loan and has incurred (but not recorded) interest expense of $4,000 for the year ended december 31. the company will pay the interest five days after the year - end on january 5. note: enter debits before credits. transaction general journal debit credit f. record entry clear view general journal

Explanation:

Step1: Identify the accounts involved

The company has incurred interest expense and has a liability for the unpaid interest. Interest Expense is debited as it is an expense, and Interest Payable is credited as it is a liability.

Step2: Record the journal entry

Debit Interest Expense for $4,000 and credit Interest Payable for $4,000.

Transaction	General Journal	Debit	Credit
	Interest Payable		$4,000

Answer:

Transaction	General Journal	Debit	Credit
	Interest Payable		$4,000