How do you record entries for a loan?

Hello there, @Recycler70.

I'd be glad to guide you on how to record entries for loans in QuickBooks Desktop (QBDT).

To begin with, for the interest-only payments, you can write a check posted to the appropriate expense account used for tracking loan interest. But first, you'll have to set up an expense account.

Here's how:

1. Go to the List menu, then select Chart of Accounts.
2. Right-click anywhere, then select New.
3. Select Expense, then Continue.
4. Enter the account name for the interest payments or fees and charges, Then select Save and Close.

To record the loan amount, deposit it for Cash loans. Here's how:

1. Go to the Banking menu, then select Make Deposits.
2. If the payments to Deposit window open, select Cancel.
3. In the Make Deposits window:

• In the Deposit To field, select the account to deposit the loan into.
• Check the Date and enter an optional Memo.
• In the From Account column, select the Liability account.
• In the Amount column, enter the loan amount.
• Select Save & Close.

For the Non-cash loans. You'll have to create an asset account by going to the COA and then creating a new one. After that, select an account type for your non-cash loan either fixed asset, other current asset, or other asset. Then, select Continue to enter the name and number of the account. When you're done, select Save & Close.

After that, you'll have to enter a Journal Entry by going to the Company menu, and then select Make General Journal Entries. Enter the Date and journal entry number. Select the first line and debit the loan asset account. Then, select the second line and credit the liability account. Lastly, Select Save and Close.

Once done, record the loan payments. Here's how:

1. Go to the Banking menu, then select Write Checks.
2. Select the Bank Account you want to use to pay the loan.
3. Verify the Check NO. and Date.
4. In the Pay to the Order of field, select the name of the bank.
5. In the Expenses tab:
   1. On the first line, select the liability account then enter the payment for the principal amount.
   2. On the second line, select the interest expense account. Then enter the payment for the loan interest.
6. (Optional) Memorize the check if you want QuickBooks to automatically enter the payment at regular intervals.
   1. Select Memorize.
   2. Fill out the fields as needed.
   3. Select OK.
7. When you’re done, select Save & Close.

For more detailed information, you may refer to this article: Manually track loans in QuickBooks Desktop.

I'll also add this article to guide you match your bank and credit card statements: Reconcile an account.

Please don't hesitate to click Reply, if you have further concerns about recording loans or other QBDT-related concerns. I'll be here to further assist you.