Journal entry or new transaction?

It's important to maintain accurate financial records, Porsche944na. Let me help you with this task.

Yes, both options would have the same effect on your books. However, you'd want to consider how you want your records to reflect the actual transaction history. Additionally, I suggest checking in with an accountant for guidance on which method would suit your business workflow and professional advice to ensure your records are accurate.

For more details, please feel free to check out these resources:

• Create a journal entry in QuickBooks Desktop
• Manually track loans in QuickBooks Desktop

For future reference, here's a guide to ensuring your QuickBooks accounts match your real-life ones: Learn the reconcile workflow in QuickBooks.

Come back to this post if you have any other questions about recording your transactions in QuickBooks, Porsche944na. The Community is always available for you.

@Porsche944na 

To answer your question, it's necessary to know:

1) The date you made the $4K payment.

2) Was this payment for prepaid interest (interest that extends beyond the end of the tax year in which the payment was made)?

3) What is the date of your accountant's reversing journal entry?

4) Was the $4K interest expense deducted on your tax return in the same year the payment was made?