Treasurer for small non-profit, here. We recently purchased a new office building. Bank gave us a $400k credit line at closing, we had to deposit $100k with the bank (so we've got $400k to work with, but $300k came from the bank and $100k came from us). Building was purchased for $190k. We are now undergoing $210k in renovations. We're drawing the $400k down the same as you would a construction loan. So, for example, at the end of the week, we request $48k from the bank construction loan, they deposit the money into our operating account, and we then write a check to the contractor. Once construction is complete, the loan balance will be termed out into a long-term fixed note. How in the world do I properly record all of this (desktop version). The bldg is a fixed asset, obviously. Do I journal from the construction loan account to the checking account, and then record the payment to the contractor in the operating register? If so, how does the building account reflect the increase in property value as the construction work gets done? Thanks,
