When you borrow money, you not only pay interest but also track the interest in your ledgers. Interest Payable is the account for recording interest you owe but haven't yet paid. You can find an ...

Notes payable is accounting-speak for promissory notes, written commitments that say you've borrowed money and have to pay it back. Like other outstanding debts, notes payable affect your bottom line.

A promissory note is a financial and legal instrument through which one party agrees (or promises) to pay another party a sum of money that's comprised of two pieces: principal and interest. These ...

Calculate interest for notes using a 360-day year for accuracy. Record interest revenue as it accrues, before actual cash is received. Adjust entries for accrued interest to match revenue recognition ...

Convert your interest rate to a decimal for accrued interest calculations. Use your daily interest rate and account balance to find interest due. Adjust calculations for varying balances using average ...