Current Liabilities: Definition, Types, and Examples
The corporation will also be incurring interest expense and a current liability of $20,000 per month ($120,000 semiannually divided by 6 months). Therefore, each month the corporation will record a debit of $20,000 to Interest Expense and a credit of $20,000 to the current liability account Accrued Interest Payable. Reporting the amount of current liabilities…