P & L Report with Credit Card Charges and Liabilites
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When entering credit card purchases and you itemize each charge in the expense section in each correct account, will the expenses be itemized on a profit and loss report?
Also, I have a Long Term Liability (Loan), when making payments to the loan why doesn't the payment show up as a expense on the P & L report?
Answer
1) If you enter your charges, using Banking>Enter Credit Card Charges. . .and, put the appropriate date and expense account on the expense tab, it will flow to your P & L
2) When you make payments to your loan, you should break out the interest and principal portions. The interest expense will show on your P & L, the reduction in principal will show on your Balance Sheet.
Does this help?
Laura D
*****
Cents-able Bookkeeping, LLC
www.centsablebookkeeping.com
http://proadvisor.intuit.com/r...
Answer
Your loan payment does not show up because it is not an expense. More likely than not you made a purchase with the money and that purchase is your expense. If you borrowed money to but a vehicle you either took Section 179 , MACRS, or SL depreciation. The depreciation is your expense.
Marc Barnes
To learn more about Copper Canyon Tax, please visit out website.
Answer
To expend on CopperCanyon's answer, the Loan would have been initially setup like this:
DR Supplies(or Equipment) $1,000 CR Loan $1,000
So the expense or asset was recorded back then, and the payments to the Owner would be:
DR Loan $90 DR Interest expense $10 CR Bank account $100
