Line of Credit

It's good to have you here, @sw1222. 

Let me guide you on how to record your line of credit loan and the interest paid by account B in QuickBooks Online (QBO) correctly.

To start, let's set up the line of credit in QBO by creating a liability account for the principal and an expense for the interest. 

Here's how to create a liability account:

1. Select Chart of account from the Settings section.

2. Click the New tab.

3. Type in the Account Name.

4. Pick Other Current Liabilities from the Account type dropdown.

5. Click the Detail type dropdown and choose Line of Credit.

6. Once done, tap Save.

For detailed steps in creating an expense account, check out this article: Manage a line of credit in QuickBooks Online.

Once you’ve set up your two accounts, you can track the transactions in your line of credit. Make sure you record the bills and expenses, and if you want to put your credit funds into another account, you need to make a transfer.

Moreover, I recommend reaching out to your accountant on or before performing this to guide you in placing these transactions to correct accounts and avoid book inconsistencies.

Also, you can read this article to run a report to ensure that transactions are being recorded to the correct accounts: Run reports in QuickBooks Online.

Let me know if you have additional questions about managing your loan interest in QBO. We'll be willing to assist you. Take care, and wishing you a good one.