[diala]

[pready]

I do not understand the question. Are you saying that you purchased office equipment and signed a notes payable, and now you want to know how to record the payment of the notes payable or are you saying where to put your notes payable on a balance sheet.

First Notes Payable is a liability and it goes on the Liabilities section of the balance sheet. The portion of the note that is payable within one year will be in the current labilities section within the Liabilities section of the balance sheet and the rest of the note will be in the Long-Term liabilities of the liabilities section in the balance sheet.

To record the payment of a notes payabe you have to know how much interest you have to pay. Th formula is: note amount * interest rate * time that you held the note.

The journal entry will be:
Debit Notes Payable for the principle amount of the note being paid
Debit Interest Expense for the amount of interest being paid
Credit Cash for the total amount being paid.