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Notes Payable UnsecuredSchedule G Form

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notes payable assume that the business bought goods for $4,000 from a supplier and promised to pay within one month usually suppliers agree on such terms and accepted lane payment without charging any interest on that amount it is regarded as accounts payable what if the business both routes for $400,000 and asked for six months to pay the supplier in this case could ask the business to sign a promissory note that bears interest and has a maturity date in our example the supplier asked for 6% and to be paid after six months the business signs the note and pass it over to the supplier another example may be that the business asked the bank to lend it money for two years the bank will agree to lend the money of the business signed the promissory note to pay the amount of the loan which is $100,000 in our case in two years and pay an annual interest of 12% this is what we call notes payable now let's see how to account for notes payable assume that on October 1st business received

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