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
Borrowing money from a bank for less than one year to provide capital to company
Accounts Payable


Notes Payable is used for loans longer than one year.

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