Hi all,
I have taken over the books of an entity and noticed that COVID related principal and interest deferrals from 2020 were never recorded.
The booked mortgage loan amount agrees with the bank records. The bank does not record the deferral in their statements, so I do not wish to disturb the amount of the mortgage. It simply provides a reminder statement quarterly that there is additional amounts owing under the mortgage.
Here is the entry, I just can not figure out where to park the debit on the principal portion of the deferral!
DR Interest Expense
CR Accrued Interest Payable
DR ???
CR Deferred Principal Payments
Any help is appreciated!
