{"id":4015,"date":"2020-10-24T15:48:49","date_gmt":"2020-10-24T15:48:49","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&#038;p=4015"},"modified":"2021-04-07T20:05:06","modified_gmt":"2021-04-07T20:05:06","slug":"entries-related-to-notes-payable","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/entries-related-to-notes-payable\/","title":{"raw":"Entries Related to Notes Payable","rendered":"Entries Related to Notes Payable"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Record journal entries related to notes payable<\/li>\r\n<\/ul>\r\n<\/div>\r\nHere's a short video on Notes Payable.\r\n\r\nhttps:\/\/youtu.be\/hdyO5Csq1Hs\r\n\r\nLet\u2019s follow this example: YourCo borrows $100,000 from the bank on December 1 of 20X1 at 12% interest (compounded monthly) with principal and interest due monthly so that the loan is completely amortized by December 1 of 20X9. Monthly payments will be $1,625.28\r\n\r\nNotes Payable is a general ledger liability account in which a company records the face amounts of the promissory notes that it has issued. The balance in Notes Payable represents the amounts that remain to be paid. The journal entry to record the receipt of the proceeds of the note is fairly straight-forward--increase the checking account to reflect the deposit, and increase a long-term liability account called Notes Payable:\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 101<\/span><\/caption>\r\n<thead>\r\n<tr>\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Date<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Post. Ref.<\/th>\r\n<th scope=\"col\">Debit<\/th>\r\n<th scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20X1<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Dec 1<\/th>\r\n<td>Checking Account<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">100,000<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Dec 1<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Notes Payable<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">100,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Dec 1<\/span><\/th>\r\n<td>To record proceeds from bank loan<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nSince a note payable will require the issuer\/borrower to pay interest, the issuing company will have interest expense. Under the accrual method of accounting, the company will also have another liability account entitled Interest Payable. In this account, the company records the interest it has incurred but has not paid as of the end of the accounting period.\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 115<\/span><\/caption>\r\n<thead>\r\n<tr>\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Date<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Post. Ref.<\/th>\r\n<th scope=\"col\">Debit<\/th>\r\n<th scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20X1<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">Dec 31<\/th>\r\n<td>Interest expense<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Dec 31<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Interest payable<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Dec 31<\/span><\/th>\r\n<td>To record interest on bank loan<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nInterest incurred in December on the $100,000 principle for one month at 12% annual interest was $1,000, so that amount is recorded both as an expense and a payable (current liability).\r\n\r\nIn January, when the payment is made, the entry looks like this:\r\n<table class=\"fin-table gridded\"><caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 1<\/span><\/caption>\r\n<thead>\r\n<tr>\r\n<td colspan=\"5\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"col\">Date<\/th>\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Post. Ref.<\/th>\r\n<th scope=\"col\">Debit<\/th>\r\n<th scope=\"col\">Credit<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>20X2<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope=\"row\">January 1<\/th>\r\n<td>Interest payable<\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,000.00<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\r\n<td>Notes Payable<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">625.28<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking Account<\/td>\r\n<td><\/td>\r\n<td class=\"r\"><\/td>\r\n<td class=\"r\">1,625.28<\/td>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\r\n<td>To record monthly payment on bank loan<\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nHere are T account representations of the liability accounts (the checking account with the credit of $1,685.28 is not shown):\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/12132551\/Entries-Related-to-Notes-Payable.png\"><img class=\"alignnone size-full wp-image-5567\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/12132551\/Entries-Related-to-Notes-Payable.png\" alt=\"Two T accounts side by side. On the left is an interest payable chart. On the credit side, there is a beginning balance of 1,000 dollars. On January 1st, there is a debit entry of 1,000 dollars. There is a credit total of 0 dollars. On the right side is a notes payable chart. On the credit side, there is a beginning balance of 100,000 dollars. On January 1st, there is a debit entry of 625.28 dollars. There is a debit total of 99,374.72 dollars.\" width=\"728\" height=\"267\" \/><\/a>\r\n\r\nThe general ledger account for Notes Payable has been reduced by the amount of the principal portion of the payment, and should agree with the amortization schedule.\r\n<div align=\"left\">\r\n<table class=\"fin-table gridded\">\r\n<tbody>\r\n<tr>\r\n<th colspan=\"2\" scope=\"col\">payment<\/th>\r\n<th scope=\"col\">Beg. Bal.<\/th>\r\n<th scope=\"col\">Payment<\/th>\r\n<th scope=\"col\">New balance<\/th>\r\n<th scope=\"col\">Interest<\/th>\r\n<th scope=\"col\">Ending Bal.<\/th>\r\n<\/tr>\r\n<tr>\r\n<td><\/td>\r\n<td>1-Dec-X1<\/td>\r\n<td>\u00a0 100,000.00<\/td>\r\n<td><\/td>\r\n<td>\u00a0 100,000.00<\/td>\r\n<td>1,000.00<\/td>\r\n<td>\u00a0 101,000.00<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1<\/td>\r\n<td>1-Jan-X2<\/td>\r\n<td>\u00a0 101,000.00<\/td>\r\n<td class=\"highlight-red\">($1,625.28)<\/td>\r\n<td class=\"highlight\">99,374.72<\/td>\r\n<td>\u00a0 \u00a0 993.75<\/td>\r\n<td>\u00a0 100,368.46<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2<\/td>\r\n<td>1-Feb-X2<\/td>\r\n<td>\u00a0 100,368.46<\/td>\r\n<td class=\"highlight-red\">($1,625.28)<\/td>\r\n<td>98,743.18<\/td>\r\n<td>\u00a0 \u00a0 987.43<\/td>\r\n<td>99,730.61<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>3<\/td>\r\n<td>1-Mar-X2<\/td>\r\n<td>99,730.61<\/td>\r\n<td class=\"highlight-red\">($1,625.28)<\/td>\r\n<td>98,105.33<\/td>\r\n<td>\u00a0 \u00a0 981.05<\/td>\r\n<td>99,086.38<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>4<\/td>\r\n<td>1-Apr-X2<\/td>\r\n<td>99,086.38<\/td>\r\n<td class=\"highlight-red\">($1,625.28)<\/td>\r\n<td>97,461.10<\/td>\r\n<td>\u00a0 \u00a0 974.61<\/td>\r\n<td>98,435.71<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5<\/td>\r\n<td>1-May-X2<\/td>\r\n<td>98,435.71<\/td>\r\n<td class=\"highlight-red\">($1,625.28)<\/td>\r\n<td>96,810.42<\/td>\r\n<td>\u00a0 \u00a0 968.10<\/td>\r\n<td>97,778.53<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNotice when you are studying financial statements that interest expense can be\r\n\r\n<\/div>\r\n<ol>\r\n \t<li style=\"font-weight: 400\">capitalized as part of inventory (for instance, auto dealers often finance the inventory) or part of the cost of an asset, such as a building where construction is being financed, or<\/li>\r\n \t<li style=\"font-weight: 400\">shown on the income statement AFTER income from operations.<\/li>\r\n<\/ol>\r\nThe reason for showing interest expense after income from operations is so if an investor is comparing two companies that are very similar, except one borrowed very little from third parties, instead relying on equity financing, and the other is heavily debt financed, the interest expense does not affect income from operations, so the two companies are easier to compare.\r\n\r\nAlso, there normally isn\u2019t an account for the current portion of long-term debt. It is simply a reclassification that happens as the financial statements are being prepared (often on the worksheet).\r\n<div class=\"textbox tryit\">\r\n<h3>practice question<\/h3>\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/23811\r\n\r\n[ohm_question]206030[\/ohm_question]\r\n\r\n[ohm_question]206032[\/ohm_question]\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li style=\"font-weight: 400\">Record journal entries related to notes payable<\/li>\n<\/ul>\n<\/div>\n<p>Here&#8217;s a short video on Notes Payable.<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"FA 8 2 Notes Payable\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/hdyO5Csq1Hs?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Let\u2019s follow this example: YourCo borrows $100,000 from the bank on December 1 of 20X1 at 12% interest (compounded monthly) with principal and interest due monthly so that the loan is completely amortized by December 1 of 20X9. Monthly payments will be $1,625.28<\/p>\n<p>Notes Payable is a general ledger liability account in which a company records the face amounts of the promissory notes that it has issued. The balance in Notes Payable represents the amounts that remain to be paid. The journal entry to record the receipt of the proceeds of the note is fairly straight-forward&#8211;increase the checking account to reflect the deposit, and increase a long-term liability account called Notes Payable:<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 101<\/span><\/caption>\n<thead>\n<tr>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Date<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Post. Ref.<\/th>\n<th scope=\"col\">Debit<\/th>\n<th scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20X1<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Dec 1<\/th>\n<td>Checking Account<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">100,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Dec 1<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Notes Payable<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">100,000<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Dec 1<\/span><\/th>\n<td>To record proceeds from bank loan<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Since a note payable will require the issuer\/borrower to pay interest, the issuing company will have interest expense. Under the accrual method of accounting, the company will also have another liability account entitled Interest Payable. In this account, the company records the interest it has incurred but has not paid as of the end of the accounting period.<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 115<\/span><\/caption>\n<thead>\n<tr>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Date<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Post. Ref.<\/th>\n<th scope=\"col\">Debit<\/th>\n<th scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20X1<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Dec 31<\/th>\n<td>Interest expense<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Dec 31<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Interest payable<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000.00<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Dec 31<\/span><\/th>\n<td>To record interest on bank loan<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Interest incurred in December on the $100,000 principle for one month at 12% annual interest was $1,000, so that amount is recorded both as an expense and a payable (current liability).<\/p>\n<p>In January, when the payment is made, the entry looks like this:<\/p>\n<table class=\"fin-table gridded\">\n<caption class=\"u-clearfix\"><span>Journal<\/span><span style=\"float: right\">Page 1<\/span><\/caption>\n<thead>\n<tr>\n<td colspan=\"5\"><\/td>\n<\/tr>\n<tr>\n<th scope=\"col\">Date<\/th>\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Post. Ref.<\/th>\n<th scope=\"col\">Debit<\/th>\n<th scope=\"col\">Credit<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>20X2<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">January 1<\/th>\n<td>Interest payable<\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,000.00<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\n<td>Notes Payable<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">625.28<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Checking Account<\/td>\n<td><\/td>\n<td class=\"r\"><\/td>\n<td class=\"r\">1,625.28<\/td>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">January 1<\/span><\/th>\n<td>To record monthly payment on bank loan<\/td>\n<td><\/td>\n<td><\/td>\n<td><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Here are T account representations of the liability accounts (the checking account with the credit of $1,685.28 is not shown):<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/12132551\/Entries-Related-to-Notes-Payable.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5567\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/12132551\/Entries-Related-to-Notes-Payable.png\" alt=\"Two T accounts side by side. On the left is an interest payable chart. On the credit side, there is a beginning balance of 1,000 dollars. On January 1st, there is a debit entry of 1,000 dollars. There is a credit total of 0 dollars. On the right side is a notes payable chart. On the credit side, there is a beginning balance of 100,000 dollars. On January 1st, there is a debit entry of 625.28 dollars. There is a debit total of 99,374.72 dollars.\" width=\"728\" height=\"267\" \/><\/a><\/p>\n<p>The general ledger account for Notes Payable has been reduced by the amount of the principal portion of the payment, and should agree with the amortization schedule.<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table gridded\">\n<tbody>\n<tr>\n<th colspan=\"2\" scope=\"col\">payment<\/th>\n<th scope=\"col\">Beg. Bal.<\/th>\n<th scope=\"col\">Payment<\/th>\n<th scope=\"col\">New balance<\/th>\n<th scope=\"col\">Interest<\/th>\n<th scope=\"col\">Ending Bal.<\/th>\n<\/tr>\n<tr>\n<td><\/td>\n<td>1-Dec-X1<\/td>\n<td>\u00a0 100,000.00<\/td>\n<td><\/td>\n<td>\u00a0 100,000.00<\/td>\n<td>1,000.00<\/td>\n<td>\u00a0 101,000.00<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>1-Jan-X2<\/td>\n<td>\u00a0 101,000.00<\/td>\n<td class=\"highlight-red\">($1,625.28)<\/td>\n<td class=\"highlight\">99,374.72<\/td>\n<td>\u00a0 \u00a0 993.75<\/td>\n<td>\u00a0 100,368.46<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>1-Feb-X2<\/td>\n<td>\u00a0 100,368.46<\/td>\n<td class=\"highlight-red\">($1,625.28)<\/td>\n<td>98,743.18<\/td>\n<td>\u00a0 \u00a0 987.43<\/td>\n<td>99,730.61<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>1-Mar-X2<\/td>\n<td>99,730.61<\/td>\n<td class=\"highlight-red\">($1,625.28)<\/td>\n<td>98,105.33<\/td>\n<td>\u00a0 \u00a0 981.05<\/td>\n<td>99,086.38<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>1-Apr-X2<\/td>\n<td>99,086.38<\/td>\n<td class=\"highlight-red\">($1,625.28)<\/td>\n<td>97,461.10<\/td>\n<td>\u00a0 \u00a0 974.61<\/td>\n<td>98,435.71<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>1-May-X2<\/td>\n<td>98,435.71<\/td>\n<td class=\"highlight-red\">($1,625.28)<\/td>\n<td>96,810.42<\/td>\n<td>\u00a0 \u00a0 968.10<\/td>\n<td>97,778.53<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Notice when you are studying financial statements that interest expense can be<\/p>\n<\/div>\n<ol>\n<li style=\"font-weight: 400\">capitalized as part of inventory (for instance, auto dealers often finance the inventory) or part of the cost of an asset, such as a building where construction is being financed, or<\/li>\n<li style=\"font-weight: 400\">shown on the income statement AFTER income from operations.<\/li>\n<\/ol>\n<p>The reason for showing interest expense after income from operations is so if an investor is comparing two companies that are very similar, except one borrowed very little from third parties, instead relying on equity financing, and the other is heavily debt financed, the interest expense does not affect income from operations, so the two companies are easier to compare.<\/p>\n<p>Also, there normally isn\u2019t an account for the current portion of long-term debt. It is simply a reclassification that happens as the financial statements are being prepared (often on the worksheet).<\/p>\n<div class=\"textbox tryit\">\n<h3>practice question<\/h3>\n<p>\t<iframe id=\"lumen_assessment_23811\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=23811&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_23811\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<p><iframe loading=\"lazy\" id=\"ohm206030\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=206030&theme=oea&iframe_resize_id=ohm206030&show_question_numbers\" width=\"100%\" height=\"150\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" id=\"ohm206032\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=206032&theme=oea&iframe_resize_id=ohm206032&show_question_numbers\" width=\"100%\" height=\"150\"><\/iframe><\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-4015\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Entries Related to Notes Payable. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":90270,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Entries Related to Notes Payable\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-4015","chapter","type-chapter","status-publish","hentry"],"part":825,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/users\/90270"}],"version-history":[{"count":13,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4015\/revisions"}],"predecessor-version":[{"id":6754,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4015\/revisions\/6754"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/parts\/825"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/4015\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/media?parent=4015"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=4015"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/contributor?post=4015"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/license?post=4015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}