Can you explain the difference between these journal entries for interest on bonds payable and notes payable? I am confused why the notes payable differ from the bonds payable because the bonds payable credits cash while the notes payable credits interest payable.

Complete the 12/31/20Y1 entry for 20Y1 interest expense related to the following three loans:

1. $122,500, 12%, 3-year note payable issued 2/1/20Y1

2. $500,000, 14%, 10-year bonds payable issued 1/1/20Y0

3. $300,000, 10%, 5-year note payable issued 5/1/20Y1

This is how my professor solved for interest amounts:

1. 122,500 x 12% x 11/12 = 13,475

2. 500,000 x 14% = 70,000

3. 300,000 x 10% x 8/12 = 20,000

These are the journal entries.

JOURNAL:

1. 12/31 Interest Expense 13,475

Interest Payable 13, 475

2. 12/31 Interest Expense 70,000

Cash 70,000

3. 12/31 Interest Expense 20,000

Interest Payable 20,000