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Record Interest on note payable

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Hi,
So we took out a loan from the bank. I have recorded it as notes payable in QBO already. Now, the loan is accruing interest monthly. How do I record it (the interest) as part of the notes payable so that when I run my reports the balance in notes payable will show the principal amount plus any accrued interest. Thanks

QuickBooks Online

RustlerAnswer

One of two ways

1. journal entry, debit interest expense and credit the loan liability

or

2. Open the liability register from the chart of accounts, make a new entry as an increase and use interest expense as the account

RustlerAnswer

One of two ways

1. journal entry, debit interest expense and credit the loan liability

or

2. Open the liability register from the chart of accounts, make a new entry as an increase and use interest expense as the account

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