What is the journal entry to record a loan from a bank, owner, related party, or any other entity that is unaffiliated with the company?
When a company borrows money, they would debit cash for the amount of money received and then credit note payable (or a similar liability account). The liability could be split between a current liability and a noncurrent liability depending on when the company must pay back the lender.
When the company must payback the loan, they would debit note payable and credit cash.
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