I am entering transactions in a journal and I am not sure what account to Dr. & what account to Cr. & whether?

Question

Not sure whether 2 have 1 account for the total amount paid 2 the bank or a separate account 4 interest?

(Signed a short term note for $7000 payable to the bank)
(Paid the bank the money borrowed plus 1% monthly interest, 05/14 - 06/14 rounded 2 the next dollar)

This is how I THOUGHT ( not real bright sometimes lol )this should be done.....

Cash...................................7000
Note Payable.................................7000
Note Payable......................7000
Cash..............................................7000
Interest Payable..................70
Cash..............................................70

Answer 1

You could do an amortization then doctor it ups to fit your needs. I use the one below a lot. It helps me think things through.

The second one has lots of calculators, perhaps there's one there that will meet your need better.

Good luck.