A client who flips homes as his business took out an interest only mortgage loan for $618,600 in Dec 2021 with a "Construction Holdback" of $151,100. How do I set up this mortgage in Quickbooks? The heldback portion is released in varying amounts as construction aspects are completed.
There's nothing to record in regards to the holdback portion. Record the original loan as a DR to cash, CR to loan payable, and increase the liability as the bank releases the holdback funds. The holdback has no place on the financial statements of the company.
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