Term
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Definition
| A primissory note that obligates the issuing corporation to repay a stated amount at or by a specified maturity date and to pay interest to the lender between the issue date and maturity. |
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Term
| How do you record notes issued for cash if you are the borrower? |
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Definition
| You debit cash and you credit notes payable. |
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Term
| How do you record notes issued for cash is you are the lender? |
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Definition
| You debit nottes receivable and credit cash. |
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Term
| How do you record interest payments for nortes if you are the borrower? |
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Definition
| You debit interest expense and credit cash. |
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Term
| How do you record interest payments on notes if you are the lender? |
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Definition
| You debit cash and credit interest revenue. |
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Term
| How do you record notes exchanged for an asset other then cash if you are the issuer? |
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Definition
| You debit asset and then you credit notes payable. |
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Term
| How do you record notes exchanged for an asset other then cash if you are the lender? |
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Definition
| You debit notes receivable and then you credit sales revenue. |
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Term
| What are installment notes? |
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Definition
| Notes payable for which equal installment payments include both an amount that represents interest and an amount that represents a reduction of the outstanding balance so that at maturity the note is completely paid. |
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