The journal entry for accruing interest expense on a one-year note involves credits to prepaid interest and interest payable, along with debits to interest expense and cash. This reflects the process of recognizing interest costs incurred but not yet paid. Proper recording ensures accurate financial statements and compliance with accounting principles.

1. The journal entry to record the accrual of interest expense on a one-year note requires a credit to
Prepaid Interest.
Interest Expense.
Cash.
Interest Payable.
Prepaid Interest.
Interest Expense.
Cash.
Interest Payable.