the Peach Tree software we are using is pretty dated I believe 2011. We receive statements monthly from the bank for a large equipment financed loan. The accounts used in setting up the loan were Note payable to the bank; Interest Expense, and the other accounting person set the bank of as a vendor and posts the statements as vendor Purchases then when the payments are posted it is paid through the pay bills and is applied to the made up invoice number that is associated with purchase set up for the statement when I go into the Journal from the vendor Purchase window it shows that the journal entries were a debit for the Principal amount to the Note Payable account and Debit for interest to interest account and then credits the accounts payable account. Is this correct as the payment is being paid online using our bank account checking. Then in the payments window I pull of the journal and it shows the debit to accounts payable and credit to cash/bank account. Is this overstating/understating anything in our reports?