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Siena Marie
March 16, 2022
Solved

Record Interest on note payable

  • March 16, 2022
  • 1 reply
  • 5 views

Hi, 
So we took out a loan from the bank. I have recorded it as  notes payable in QBO already. Now, the loan is accruing interest monthly. How do I record it (the interest) as part of the notes payable so that when I run my reports the balance in notes payable will show the principal amount plus any accrued interest. Thanks

Best answer by Rustler

One of two ways

 

1. journal entry, debit interest expense and credit the loan liability

or

2. Open the liability register from the chart of accounts, make a new entry as an increase and use interest expense as the account

1 reply

Rustler
RustlerAnswer
Level 15
March 16, 2022

One of two ways

 

1. journal entry, debit interest expense and credit the loan liability

or

2. Open the liability register from the chart of accounts, make a new entry as an increase and use interest expense as the account

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