This has the effect of increasing the company’s revenue and accounts receivable on its financial statements. To record accrued interest expense, an adjusting entry debits notes payable for the amount of accrued interest, while a credit to accrued interest revenue is made on the income statement. A debit to interest expense and a credit to
Also, it indicates the amount by which the seller needs to adjust its invoice to the buyer, reducing the amount due for the sale by the appropriate amount. After the third month, the note has now been completely paid off, and Anne’s Apparel has recorded a total of $246 in interest revenue over the three-month
Regularly reviewing your expenses helps identify areas where you can cut costs and improve efficiency. CPAs can help with tax planning and tax filing, including state and federal income tax returns, payroll tax returns, startup cpa and sales and use tax returns. CPAs must keep up their tax and accounting knowledge with continuing education each