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    Dollface12's Avatar
    Dollface12 Posts: 1, Reputation: 1
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    #1

    May 16, 2016, 12:05 PM
    Trading Services for money
    We teach students how to fly airplanes and also repair and maintain airplanes. Someone loaned us $10,000 to make a down payment on a plane. They then went and bought a plane and we pay the loan back by doing repairs on their airplane. The loan is a note payable but I am not sure how to post the "payments."

    Note Payable loan from Mr. A $10,000

    Labor for repairs 1/8/15 -$480
    Labor for repairs 3/10/15 -$1400
    Labor for repairs 8/25/15 -$2600

    I just need help in how to post the payment transactions. Thank you.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #2

    May 16, 2016, 02:07 PM
    Wait, I'm totally confused. Why did you borrow 10K so that they could buy a plane? AND do repairs in trade? Who owes or paid for the rest of the plane cost? Who actually owns it? You keep saying it's theirs.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    May 16, 2016, 03:49 PM
    How does this transaction differ from any other repayment you might make? If a creditor for $10,000 exists in your books then the transactions would reduce that balance, however the bigger question is where does the full capital value of the plane reside; in their books or yours. Are you acquiring an asset or repaying a loan?
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #4

    May 16, 2016, 04:56 PM
    (Hi, please copy what you wrote to me and paste it here so others can answer publicly.)
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