When recording a loan payment the interest is entered as "Interest" under expensis on the P & L. Where is the principal payment recorded?
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When recording a loan payment the interest is entered as "Interest" under expensis on the P & L. Where is the principal payment recorded?
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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