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Interest payable is liability to be cleared in future that's why shown in liability side of balance sheet.
Wiki User
∙ 10y ago
Wiki User
∙ 10y agoInterest payable is liability to be cleared in future that's why shown in liability side of balance sheet.
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Where does interest payable belongs in the elements of financial statement?
liability
Does interest payable a debit or credit?
Interest payable is debit.
What are the accounting journal entries to accrue a contingency payable?
Contingency transations have no entry until contingency not clear and only shown in notes to financial statements.
1 When a corporation pays a note payable and interest?
Debit notes payable and interest expense
Is interest payable a credit or debit?
Interest payable is liability account and have a credit balance as a normal balance.
How is Interest Expense with a credit balance classified in the financial statements?
An Interest Expense with a credit balance is reclassified as Interest Payable on the Balance Sheet.
Where does interest payable belongs in the elements of financial statement?
liability
Is accrued expense a financial liability?
If you are doing adjusting entries, an accrued expense will affect a balance sheet account (payable) and an income statement account (expense). Such as accrued interest at the end of year would be: Interest Expense (Debit) Interest Payable (Credit)
Does interest payable a debit or credit?
Interest payable is debit.
Are interim financial statements supposed to be taxed?
No. Generally not. Tax is payable on annual income/profit of business. Interm Accounts are for managment information only.
What are the accounting journal entries to accrue a contingency payable?
Contingency transations have no entry until contingency not clear and only shown in notes to financial statements.
How do you make journal entries on provision on interest on fixed deposit?
To make a journal entry for provision on interest on fixed deposit, you would debit the Provision for Interest on Fixed Deposit account to recognize the expense and credit the Interest Income account to reduce the income earned on the fixed deposit. This adjustment ensures that the financial statements reflect the estimated liability for future interest payments accurately.
1 When a corporation pays a note payable and interest?
Debit notes payable and interest expense
Is interest payable a credit or debit?
Interest payable is liability account and have a credit balance as a normal balance.
What is the journal entry for accrued interest expense on Notes Payable?
debit interest expense, credit interest payable for the accrued amount
What is interest payable?
Interest payable is the interest the company pays on any loans, leases, hire purchases, debentures, etc. throughout the year.
What interest payable?
Interest payable is the interest the company pays on any loans, leases, hire purchases, debentures, etc. throughout the year.
