Installment Notes Payable
Installment notes payable occur when the terms of a note call for a series of periodic payments.
Each payment includes the interest plus a repayment of part of the amount that was borrowed.
On 12/31/x1, $100,000 is borrowed on a 15%, 5-year installment note. 12/31/x1 Cash 100,000 Notes Payable 100,000