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    rexmiami12a's Avatar
    rexmiami12a Posts: 1, Reputation: 1
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    #1

    Dec 6, 2008, 11:40 AM
    Rocording of a Loan Payment
    When recording a loan payment the interest is entered as "Interest" under expensis on the P & L. Where is the principal payment recorded?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 12, 2008, 07:16 PM

    When the payment is made the journal entry is:
    Debit Notes payable for the amount of principle paid
    Debit Interst Expense for the amount of Interest Paid
    Credit Cash for the total amount paid
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