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rexmiami12a
Dec 6, 2008, 11:40 AM
When recording a loan payment the interest is entered as "Interest" under expensis on the P & L. Where is the principal payment recorded?

pready
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