Re: Loan (Long term Liabilities) & principal payment
Hello @john-pero thank you so much for replying and your help.
The company is a S-Corporation. The money was borrow from a bank using the owner's personal bank account. An accountant suggested us to use "Long term liability" account.
Let me confirm that I understood correctly.
1. What I described shows the loan deposit from a bank to JPMorgan/Chase bank account. It shows up correctly how it handled by QB.
2. Once I transfer the money from my Chase bank account to pay the principal, that transaction will need to be categorized through the Banking page in (Pledged Asset Line CS) Long term Liabilities, so the liability will be decreased.
Could you please help me with the 3rd question from my original post?
Thank you so much and have a great day,