How do I make the journal entries when a payment is made on a loan.

Dr. Interest Expense
Dr. Interest Payable (maybe, depends on case facts)
Dr. Loan Payable
Cr. Cash

How to entry when I provide the loan?

Debit Notes Receivable
Credit Cash

Hello,

I have this question for my week 4 assignment and this is what I have completed. What I would like to know is where I am wrong and where I am right so I can try to figure the question out. Examples to the areas that I am wrong in to help guide me in the right direction, please.

Sentry Security Systems purchased $72,000 of office equipment on April 1, 19X3, by signing a three-year, 12% note payable to Sharp, Inc. One-third of the principal, along with interest on the outstanding balance, is payable each April 1 until maturity. (The first payment is due in 19X4.)
a. Fill in the following table to reflect Sentry's liabilities, assuming a March 31 year-end.

March 31
19X4 19X5 19X6
Current liabilities $72,000.00 $72,000.00 $72,000.00
Current portion of long-term debt $32,640.00 $32,640.00 $32,640.00
Interest payable $8,640.00 $8,640.00 $8,640.00
Long-term liabilities $39,360.00 $?? 00.00 $72,000.00
Long-term debt $97,920.00 $97,920.00 $97,920.00

At the end of each period you have to pay 1/3 of the principal i.e. $72000/3 which is $24000 per year for the 3 years of the loan, along with interest on the *outstanding* balance. To get you started, at 31 March 19X4:

The outstanding balance is the full amount of $72,000. Interest applied is 12% = $8640. The total outstanding is therefore $72,000+$8640 = $80,640. As per the question, you need to pay $24,000 + full interest due of $8,640. Therefore total payment due is $32,640 at 31 March 19x4.

This means that your current liability for the year ended 31 March 19X4 is $32,640, and long term liability is $80,640 - $32640 = $48,000.

At the end of the next year, the balance on the account before interest is applied is the closing balance of last year's account i.e. $48,000.

I'm sure you can work it out from there.

How to made a journal entry when a person pays for membership