Current Liabilities Accounting (Notes Payable, Interest Bearing Vs Zero Interest Bearing)

Accounting for notes payable as current liabilities, comparing interest bearing vs zero interest bearing notes payable, Notes Payable are written promises to pay a certain sum of money on a specified day, can issue for purchases, financing or other transactions, often referred to as trade notes payable, Interest bearing note has a stated rate of interest on the note which includes interest payable and interest expense included with notes payable, Zero-interest bearing note does not explicitly state an I/R on face of note, interest is still charged , at maturity the borrower must pay back an amount greater than cash received at issuance (receive cash at present value of the note which equals face value of note at maturity minus interest or discount charged by lender), zero interest bearing note payable has discount to notes payable which is a contra account to notes payable which equals the cost of borrowing and is included as interest expense, detailed calculations and accounting by Allen Mursau