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M
MDiBella
January 7, 2025
Question

Short term loan

  • January 7, 2025
  • 1 reply
  • 0 views

We received a loan last year and I need to edit the Short Term and Long Term amounts to reflect the new year balances. How would that journal entry look?

1 reply

Rainflurry
Rainflurry
January 7, 2025

@MDiBella 

 

You can adjust the amounts with a journal entry (JE).  For example, if you need to increase the short-term (OCL) $25,000 and decrease the long-term (LTL) $25,000, the JE would look like this:

 

 DebitCredit
Long term (LTL)25,000 
   Short-term (OCL) 25,000

 

If you need to decrease the short-term and increase the long-term, just reverse the entry: debit short-term, credit long-term. 

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