Notes Payable Issued at
Discount
Illustrative Entries
| 1-1-X8 |
Cash |
9,000 |
||
| Discount on Note Payable |
10,000 |
|||
| Note Payable |
10,000 |
|||
| To record note payable, issued at a discount |
| 12-31-X8 |
Interest Expense |
1,000 |
||
| Discount on Note Payable |
|
1,000 |
||
|
To
record discount amortization |
||||
| Note Payable |
10,000 |
|||
| Cash |
10,000 |
|||
| To record repayment of note |