Saturday, February 6, 2010

Short Term Loan Journal Entry

Companies will often borrow money on a short term basis. A journal entry will provide update the accounting ledger and allow for the proper calculation of the income state and balance sheet.


Type of Journal Entry
Account titles
Debit
Credit
Borrowing money from a bank for less than one year to provide capital to company
Cash
Accounts Payable
XXX

XXX


Notes Payable is used for loans longer than one year.

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.