Journal entries: Notes and loans

Notes receivable and payable with interest, dishonored notes, loans received and repaid, accrued interest, loans to employees and overdrafts.

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The entries

1. Accepting a customer’s note for an open account
2. Collecting a note with interest
3. Giving a supplier a note for an open account
4. Paying a note with interest at maturity
5. A customer dishonors a note
6. Receiving a bank loan net of an arrangement fee
7. Paying a loan installment: splitting interest and principal
8. Accruing interest on a note payable at year end
9. Lending cash to an employee
10. Repaying a bank overdraft

Other topics

• Starting the business
• Buying goods and supplies
• Selling goods and services
• Fixed assets
• Expenses and payroll
• Adjusting, closing and correcting
• Cash and bank
• Inventory and cost of goods
• Corporations and equity
• Multi-step scenarios