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lucyav087
Level 2

A mortgage company directly paid owner's credit card when he refi'd his home. Need to enter a journal entry to adjust bal on credit card. What account to debit?

What account to debit in journal entry? Is it Opening Balance Equity?
1 Comment 1
Rustler
Level 15

A mortgage company directly paid owner's credit card when he refi'd his home. Need to enter a journal entry to adjust bal on credit card. What account to debit?

This is personal finance, I hope his CC is not in the company business books

 

the mortgage loan pays the CC as well as purchasing the house, split the loan entry something like this

 

debit CC, $$$
debit fixed asset house, $$$$$

debit fixed asset land, $$$$

credit loan liability for the full amount

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