How do you record bank interest income?
Interest income journal entry is crediting the interest income under the income account in the income statement and debit the interest receivable account in the balance sheet account.
This entry records when the company recognizes interest income.
It is an increase in credit like other kinds of income..
What type of account is interest income?
Account TypesAccountTypeCreditINTEREST EXPENSEExpenseDecreaseINTEREST INCOMERevenueIncreaseINTEREST PAYABLELiabilityIncreaseINTEREST RECEIVABLEAssetDecrease90 more rows
What is the entry for interest received from bank?
When the actual interest payment is received, the entry is a debit to the cash account and a credit to the interest receivable account, thereby eliminating the balance in the interest receivable account.
How do I record interest in QuickBooks online?
Record Interest Income in QuickBooks OnlineClick the quick-create / plus symbol in the upper right corner.Click on bank deposit under the column other.Identify the account the deposit is going into, select the date, enter the appropriate income account into the space under account.