The effect of notes payable for the issuing entity actually shows up in the three main financial statements; the statement of financial performance, the statement of financial position and the statement of cashflows.
The first statement reflects the interest payments and amortisation costs of the instruments. The second statement reflects the liability or borrowing side and movement in principle still to be repaid. While the third statement reflects the cash being received when the notes are issued and then over the period of the notes any interest and principle repayment (or at maturity if only repayable at this point).
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