PDA

View Full Version : Notes payable


rayaj
Oct 11, 2008, 03:38 AM
How if I gave 10000 for my notes payable of 20000 and issued 60 days, 5% of th notes balance?

pready
Oct 15, 2008, 02:04 PM
YOur question does not make much sense.

Did you receive something that cost $30,000 and you received Cash for $10,000 and issued a note payable for the rest of the $30,000.

If this is the case then your journal entry will be:

Debit the Equipment or Merchandise for 30,000
Credit Cash for 10,000
Credit Notes Payable for 20,000