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-   -   Rocording of a Loan Payment (https://www.askmehelpdesk.com/showthread.php?t=289076)

  • Dec 6, 2008, 11:40 AM
    rexmiami12a
    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?
  • Dec 12, 2008, 07:16 PM
    pready

    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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