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the next journal entry adjusting journal entry five record one month of interest expense on the note payable of $50 so notice on our chart of accounts excuse me our trial balance weamp;#39;ve got seven thousand dollars in notes payable and overtime interest will accrue occur just means itamp;#39;s something is accumulating in this case interest is accumulating but we have not yet paid it now notice this adjusting entry weamp;#39;re just recording one month of interest expense by definition an adjusting entry does not involve cash so we are not paying the cash excuse me weamp;#39;re not paying the interest now if we were we would just use a write checks window and we would not do an adjusting entry but we got to do an adjusting entry to show that we have interest expense and that we owe the interest so Iamp;#39;m going to go to the make general journal entries window it automatically goes to a je5 aje five and our interest expense is going to increase make sure you choose i
