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What is the journal entry to write off a notes payable liability?
Wiki User
∙ 13y ago
Since we are referring to a "note" payable, more than likely you will have paid interest on the note. Although it will be similar to paying off other payable accounts, there is the difference of "Interest Expense".
More than likely, since this is a Note Payable, the company is paying for some form of PP&E (property, plant & equipment). Since most "notes" charge interest the interest doesn't count as part of the Long-Term Asset (PP&E) but is rather a business expense that is recorded as an expense as it is paid.
Let's say we bought a Company Car to use for business and our final payment on it was $1500, of that let's say $250 is interest, our journal entry would read!
Note Payable (debit) $1250
Interest Expense (debit) $250
Cash (credit) $1500
The numbers I used are just plugged numbers and just used to show the placement of the accounts and what gets credited and debited. I hope that helps.
Wiki User
∙ 13y ago
Wiki User
∙ 9y agodebit notes payable
credit cash /bank
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What the journal entry to record a note payable?
debit Cashcredit notes payable
Journal entry to record the conversion of an 250 accounts payable to a notes payable?
debit accounts payable 250credit notes payable 250
What is the journal entry for issued a note payable?
debit accounts payablecredit notes payable
What is the journal entry for paid notes payable?
Debit notes payableCredit cash / bank
What is the journal entry for paying a notes payable and interest?
Debit notes payabledebit interest expenseCredit cash /bank
What is the Notes payable journal entry?
Debit accounts payableCredit notes payable
How do you record journal entry to increase notes payable?
debit cashcredit notes payable
What the journal entry to record a note payable?
debit Cashcredit notes payable
What is the journal entry to discount notes payable?
debit cashdebit discount chargescredit notes payable account
Journal entry to record the conversion of an 250 accounts payable to a notes payable?
debit accounts payable 250credit notes payable 250
What is the journal entry for issued a note payable?
debit accounts payablecredit notes payable
What is the journal entry for paid notes payable?
Debit notes payableCredit cash / bank
What is the journal entry for paying a notes payable and interest?
Debit notes payabledebit interest expenseCredit cash /bank
How do you make a journal entry recording an annual interest payment on a note payable?
debit interest expensecredit notes payable
What is the journal entry for borrow from bank and signed note payable in return?
Entry 1 [Debit] Cash xxxx [Credit] Bank xxxx Entry 2 [Debit] Bank xxxx [Credit] Notes payable xxxx
What statement does the notes payable go on?
Notes payable is same like accounts payable a liability of business and it is shown under current liability section of balance sheet.
What kind of account is Note Payable - shareholders?
Notes Payable is a Liability.
