Borrowed $81,000 from a local bank and signed two notes. The first note of $22,500 requires payment of principal in six months with annual interest rate 10%.
The second note of $58,500 requires the payment of principal in two years. Interest at 10% is payable each year on Feb 1, 2010, and Feb 1, 2011
Business & Finance
Advertising,Marketing,Careers,Employment,Corporations,Credit,Insurance,Investing,Personal Finance,Renting,Real Estate,Small Business,Taxes
How ro record this transaction on general ledger?
Page: 1
| Author | Post |
|---|---|
|
#1 Thu Oct 08, 2009 9:25 pm
|
|
| Member | |
|
#2 Fri Oct 09, 2009 11:10 am
|
|
| Member |
Dr Cash $81,000
Cr Notes payable - current $22,500 Cr Notes payable - long-term $58,500 Interest is accrued at the end of every month. |
Page: 1
| Business & Finance is powered by UseBB 1 Forum Software