I built a home and used accounts CIP, Loan. Once sold, how do I zero out the accounts?

Hello there, @hou_ka.

I want to ensure this is taken care of. First, can you provide more details about your concern? Any information can help us zero out the CIP and loan accounts in QuickBooks Desktop (QBDT).

Based on the scenario you've provided, it seems that there's a missing amount.

Let me know if you have other questions about managing your transactions in QuickBooks. I'm always here to help.

That’s all the I do I have. This’d umbers in my example. How do I close the loan and CIP based on the purchase price of the sell?

I'm sorry, your message does not appear online. 

@hou_ka 

To record this, some more information is needed.

1) You mentioned there was a "profit" of $125K.  Is that the amount of the check you received at closing?

2) How much are the closing costs, Realtor commission, etc? 

3) You mentioned the loan was used to pay the builder.  Do you owe the builder an additional $75K on top of the $150K loan balance that was paid off at closing?  Or, was the $75K included in the $150K loan payoff?

4) Is the $75K due to the builder included in the CIP balance of $200K?

I ended up creating 2 JEs, see attachment with notes and amounts. Not sure if they're correct as COGs ends up with a $0 balance. 

@hou_ka 

Your journal entries are not quite right.  If I'm understanding the breakdown correctly, the single journal entry should look like this:

In this case, there is no profit since your selling price (income) was $300k and you have $300K in expenses ($275K in construction costs and $25K in selling/closing costs).

Thank you for that. Is Cost of Construction Expense a new account I need to create?

@hou_ka 

Yes.  Some people use COGS but, IMO, Cost of Construction is more accurate.