How to Record a Business Credit Card Transaction Journal Entry?

As a business owner with a credit card, the total payment amount is an expense.

For example:

ABC LLC received a credit card bill from American Exp on June 30, 2023, with payment due July 15, 2023, totaling $5437. On the bill breakdown, $5,237 is toward principal, and $200 is toward interest. ABC LLC made the payment on the due date.

Date Journal Entry:

07/15/2023 Principal-------------------------$5,237

Interest Expense -----------------200

Cash----------------------------------------------$5,437

To record the payment of credit cards to American Exp.

Thanks for taking the time to read this info. I will appreciate your comment and sharing.