Mortgage accounts

If this is a rental on a property:

Open up a "Rent Mortgage" Expense Account

Create a sub-account by each location.

Process the payment(s) recording the proper amount for each location.  One cheque can be written if it's all going to the same place.  Just be sure to list the locations on the account list.

Hi Marcia255,

The first thing you need to do is set up the Mortgage Accounts.  In the Chart Of Accounts, click on the Account button and select New Account.  Select Loan.  Click Continue.  Name of the Mortgage.  Save and New.  Repeat these steps until you have all the Loans created.

Now, you need to set up each Home/Building as a Fixed Asset.  Follow the steps above but select Fixed Asset instead of Loan.

Ok, you are ready to record the balance of the Loans and the purchased price of the Home/Buildings.  You will do a journal entry for this.  The journal entries will varies due to how you actually made the purchases.  Go to Company and select General Journal Entry.  Make sure you select the date of purchase.  Debit the Fixed Asset, ( property, Credit the Loan, 1 Loan.  You will need to repeat these steps until you completed entering the balances for all properties.

When you Write a Check.  You will use the Loan Account and record the Principal Amount and you will also use Interest Expense to record the Interest portion.  Do not create sub-accounts for Interest Expense.  That is what the individual Loans Account are for.

Laura Kaniuk - LJK Bookkeeping Services

Please rate this answer.  Thank you, Marcia255.