How to Account for a Business Loan (obtained prior to using Wave)

JaeCNSTJaeCNST Member Posts: 2

How do I account for a business loan that was already used for a previous year's expense? I have not started to pay it off yet. I. I want to show the outstanding loan amount as a liability on reports each month until it is paid off.

Comments

  • MikegMikeg Member Posts: 256 ✭✭

    Since you are contributing a liability to the business - Debit Owners Equity Credit Liability (Loan)
    Mike G, CPA
    www.mgfinancial.net

  • JaeCNSTJaeCNST Member Posts: 2

    Thanks Mike G!

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