Question

Question 20 What is the adjusting journal entry to record the accrual of 100 of unpaid interest on a note payable? O A Dr. Interest Expense 100 C Cash 100 5. Dr Interest Payable 100 Cr Cash 100 O C. De Interest Expense 100 Cr Interest Payable.00 OD Dr. Interest Payable 190 Cr Interest Expense 100 E None of the above Click Submit to complete this assessment

Answer 1

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Option C is the correct answer.

Interest is an Expense

so we should debit the expense.

In this case, interest is unpaid, so it is still payable

Credit should be given to interest payable account (as a liability)

So the entry is

Account Title	Debit	Credit
Interest Expense a/c	$100
Interest Payable a/c		$100
(To record the unpaid interest expense of $100)