How do I enter in the accrued interest I paid on the purchase of a tax free bond so it lowers the interest amount on line 8?
The bank’s adjusting entry will debit Accrued Interest Receivable for $50, and will credit Interest Revenue for $50. The company’s adjusting entry will debit Interest Expense for $50, and will credit Accrued Interest Payable for $50. To accrue means to accumulate over time—most commonly used when referring to the interest, income, or expenses of an […]