@JordenLane wrote:
I have set up the Fixed Asset (Land) with the original purchase price. I've set up the loan against this purchase as long term liability, as well as the note payable accounts. How can I differentiate the note payable bank transaction, to split between principal repayment vs. interest? Or does it matter, from a balance sheet perspective?
@JordenLane
Yes, when you make the payment that includes loan repayment and interest, you do need to split the transaction. The interest portion of a payment is an expense item whereas the principal is a reduction to your loan amount. You don't show future interest payments due on the Balance Sheet.
Hope this helps!
