At the end of an accounting period, accrued interest is recorded as an adjusting journal entry that is reversed on the first day of the following period.
The accumulated interest that has not yet been paid as of the end of an accounting period is the amount of accrued interest that must be recorded.
What is the adjusting entry for interest that is accruing?
Lender-side interest income and receivable accounts make up the adjusting entry for accrued interest, while borrower-side interest expenses and payable accounts make up the adjusting entry for accrued interest.
In the adjusting entries, what is the entry for recording accrued income?
Accrued revenue is reported as earned revenue on a company's income statement and as an adjusting journal entry under current assets on the balance sheet on the financial statements. The payment is recorded as an adjustment to the asset account for accrued revenue when it is made.
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