The entry by Mekhi's Golf Service to record payment of the loan and accrued interest on January 1, 2023 is

Accrued Interest

The interest that has accumulated on a bond, loan, or other financial instrument but has not yet been paid to the lender or investor.

Loan Payment

A payment made towards a loan that may include both principal and interest components.

Bank Loan

A sum of money lent by a bank to a borrower at a defined interest rate for a specified period.

Learn the accounting treatments for different types of loans and payables, including interest calculations and loan repayments.

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Learning Objectives

Learn the accounting treatments for different types of loans and payables, including interest calculations and loan repayments.