Short-term Loans note to the financial statements

If you expect to receive a short-term loan/s (a loan in which payment is due in less than one year), than it's imperative to create a short-term loan payable note. Short-term loans may include a short-term loan from a bank, family member, relative, or some other entity. The note should provide the reader with several pieces of information such as the beginning amount owed on the short-term loan, the amount forecasted to be paid over each business year, the ending balance remaining on the loan for each business year, and when the remaining amount is to be paid. Below provides a simple example of a short-term note to the forecasted financial statements.

Loan From Family Member:
A $10,000 short-term loan from a family member will be received in July 200X. The family member requests repayment be made in two lump sums. The first payment of $5,000 must be made on December 31, 200X while the second payment of $5,000 must be paid on June 30, 200Y. In addition, the family member, will not charge any interest on the borrowed money. Below illustrates the forecasted ending balances of the short-term loan as of Dec. 31, 200X and 200Y.

The above caption can be viewed under the liabilities section on the company's forecasted balance sheet. Also, the two payments can be viewed on the company's 200X and 200Y forecasted cash flow statements.