Meli083
Jun 2, 2009, 03:02 PM
Hey I am having trouble with this entry into the T-account
For the month of May 2008:
Paid current portion of Note Payable plus interest. This 6-year note carries a 5% interest rate. This is the first annual payment made on the note. No interest has been accrued.
Note Payable - Current - $4800
NP Long Term - $24000
Total Principal Balance for note is $28800.
Do I need to take into account interest? What about the actual amount paid?
For the month of May 2008:
Paid current portion of Note Payable plus interest. This 6-year note carries a 5% interest rate. This is the first annual payment made on the note. No interest has been accrued.
Note Payable - Current - $4800
NP Long Term - $24000
Total Principal Balance for note is $28800.
Do I need to take into account interest? What about the actual amount paid?