Interest expense relates to the cost of borrowing money.
On the income statement, interest expense can represent the cost of borrowing money from banks, bond investors, and other sources.
Interest expense is different from operating expense and CAPEX, for it relates to the capital structure of a company, and it is usually tax-deductible.
The entry would be debited to interest expense and credit to accrued liability.
Finally, you debit to accounts payable and credit to cash when the interest expense is paid.