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DP6
Level 1

line of credit interest expense

Line of credit matured and has been renewed.  Bank lumped int. exp ($54) into the full balance do now my year to date int exp is short the $54 and the new balance on loan is short $54.  Do i do JE to correct and if so how?

4 Comments
Rustler
Level 15

line of credit interest expense

debit int expense 54, credit LOC 54

DP6
Level 1

line of credit interest expense

I agree that I need to debit the int exp account $54.  If I credit the LOC then it throws my balance off.

My available credit and draws in QB's ties to what the loan statement shows.  When I take the bal subject to interest rate and add in the new interest rate for the month it does not tie to the new statement balance.  It is off by the $54.

Rustler
Level 15

line of credit interest expense

An LOC only shows the amount you owe, there is no accounting entry for available credit.  Same for credit cards, you show what you owe not the credit line

DP6
Level 1

line of credit interest expense

Thank you.  So all I need to do is record the interest exp of $54?  How do I do this?

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