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lisa-2i-t-com
Jan 3, 2025 7:08 PM UTC
Question

Line of Credit

What is the correct journal entry accounts to use to record the initial advance to fund the LOC? Thanks!

    4 replies

    Rainflurry
    Rainflurry
    Jan 3, 2025 8:30 PM UTC

    @lisa-2i-t-com 

     

    No need for a journal entry.  Just create a deposit into the bank account and assign your LOC other current liability account (OCL) to the deposit.  If you don’t have an LOC OCL, set one up.  

      lisa-2i-t-comAuthor
      Jan 4, 2025 4:00 AM UTC

      Do you have a screenshot as to what that would look like?

      Rainflurry
      Rainflurry
      Jan 4, 2025 12:25 PM UTC

      @lisa-2i-t-com 

       

      To set up the new LOC, go to Transactions > Chart of Accounts > New:

       

      Capture1 1-4-5.JPG

      For the deposit into your bank account, go to New > Deposit:

       

      Capture2 1-4-5.JPG

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