Learn how to create common journal entries for accrued interest, ... Accrued interest is the interest earned on a loan over a specific period of time but has not yet been paid.

For the businesses that invest in bonds, the accrual of interest and its future payment also require two journal entries. On December 1 of each year, you will need to include the accrued interest ...

So, the initial journal entry for the sale of the above-mentioned furniture is a debit to Notes Receivable and a credit to Sales. This shows that the sale took place and the amount that is being ...