Record Interest on note payable

Siena Marie · ‎March 16, 2022

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

Rustler · ‎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

View solution in original post

Rustler · ‎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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Record Interest on note payable

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