I need some accounting help...Anyone who could answer??

Question

How do u record the ff transaction:

The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding throughout the year.

(Notes Payable=$88500.)

>>i dont know if the interest rate applies per month or if it applies for the whole year...and i dont know what you mean by "outstanding."

Thanks to whoever will take time out and help me

Answer 1

"outstanding" means what is left, for example you have a $100 bill and you pay $30 the outstanding balance is $70.  

Interest applies for the duration of the note, but not enough information to know how often it compounds.

Answer 2

the interest given is the annual interest rate.

outstanding=unpaid