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Level 1

For expenses: under what category is the mortgage payment of an office building go under?

 
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Best answer 10-15-2018

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Level 15

A mortgage payment is composed of at least two, and up to...

A mortgage payment is composed of at least two, and up to four different amounts

the principal part pays down the loan and is not an expense
the interest paid for that month is an expense

if you have insurance as part of the payment then that posts to an insurance pre-paid asset account
if you have property taxes as part of the payment then that posts to a property taxes pre-paid asset account


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Level 15

A mortgage payment is composed of at least two, and up to...

A mortgage payment is composed of at least two, and up to four different amounts

the principal part pays down the loan and is not an expense
the interest paid for that month is an expense

if you have insurance as part of the payment then that posts to an insurance pre-paid asset account
if you have property taxes as part of the payment then that posts to a property taxes pre-paid asset account


View solution in original post

Level 1

Re: A mortgage payment is composed of at least two, and up to...

I do not see a prepaid assets account in quickbook essentials. Is that something that I need to create?

Content Leader

Re: A mortgage payment is composed of at least two, and up to...

Hi there, autoventuresllc.

 

Welcome to the Community. I'd be glad to show you how to create this account in QuickBooks.

 

This can be done in just a few steps. Here's how:

 

1. Click the Accounting tab in the left navigation bar.

2. Make sure Chart of Accounts is selected at the top of the page.

3. Choose the green New button in the top right corner.

4. Enter the Type, Detail, Name, and any other necessary info for the assets account.

5. Click Save and Close.

 

This article offers additional details on setting up an asset account: https://quickbooks.intuit.com/community/Help-Articles/How-do-I-set-up-an-asset/m-p/193206.

 

Keep up the great work and please let me know if you have any other questions.

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