USA Where do I record accrued interest on loans when on cash basis?

[Kee]

I report on a cash basis. I will be getting a loan from various investors soon. I am giving them a 3 year note with 5% simple interest. For example, if I get a $100,000 loan that I have to pay back in 3 years, where do I record the accrued interest ($5,000 each year) between now and then if I report on a cash basis. I would normally have an Interest Payable account on my balance sheet on an accrual basis. But, on a cash basis, would I just keep track of accrued interest off the books, and record it only when I pay it?

 

[kirby]

On cash basis, no accruals. Just record it when you pay it.