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 ...

Understand the total interest by multiplying the annual charge by the number of years in your note. Calculate yearly interest by multiplying the principal amount by the interest rate. Know your full ...

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 ...

Calculating interest expense on a payable bond should be relatively straightforward, but then the accountants got involved. Generally accepted accounting principles, or GAAP, turn what is ordinarily a ...

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 ...