The maker of a note recognizes a note payable on the balance sheet and interest expense on its income statement.

Name: The maker of a note recognizes a note payable on the balance sheet and interest expense on its income statement.
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When a company borrows money through a note payable, it creates a liability on its balance sheet, which represents the amount owed to the lender. Additionally, the interest paid on the note is recognized as an expense on the company's income statement.

The Maker of a Note Recognizes a Note Payable on the Balance