Does a business record interest in their accounting if they started it with a personal loan?

Sam started a business with a personal loan of 50,000. He paid interest of 500 on the personal loan. Should he record the interest payment?
butterfly_52182
Asked Aug 28, 2011
The interest is an operating expense just like rent, telephone etc. For the business that loaned Sam the money, it is income.

Rob
Answered Aug 28, 2011
Edited Aug 28, 2011

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