Describe the recording procedures for the issuance, retirement, and paying of interest for notes.

At issuance, the proceeds from a note must be recognized in the appropriate asset account and the debt must be recognized as a note payable. Each interest payment (or interest plus principal payment) is recorded with a debit to Interest Expense (and a debit to Notes Payable when principal is involved) and a credit to Cash. The retirement of a note is recognized with a debit to Notes Payable and a credit to Cash (or other asset).