indenture (plural indentures) (law) A contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice). (law) A document, written as duplicates separated by indentations, specifying such a contract. An indentation. (Can we add an example for this sense?) Translations
What it is: Interest expense is the cost of money. Interest expense is recorded on the income statement. Let's assume you need $500,000 to buy a house. The price of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain.
Interest Payable. Assume that interest is paid on the loan each quarter. The company will accrue interest expense each month in the amount of $133, the annual interest calculated in step 3 divided by 12 months. The entry to accrue monthly interest will be made each month as follows: Debit Interest Expense 133 Credit Interest Payable 133.