Quicken & Other Budget/Accounting Software/Check for mortgage

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Question
Hi, first want to say that those are numbers 0 and 8 in my email address.  I am trying to enter a bill for mortgage.  I have the loan set up under long-term liab. How do I enter so that principal and interest are broken out.  Should I have an acct for both interest expense and mortgage-principal as well along with the liab acct.

Lastly, how do I record annul depreciation entries.

Answer
Hi Rhonda,
If you want to enter a bill for the monthly mortgage payment that breaks out the interest, you will have to do it manually each month. If you get a statement from the mortgage company each month you will have the correct interest, if not, you will have to calculate it. Remember that interest is calculated from the date that the payment is received, so a spreadsheet might be off a bit for the actual amounts.

To enter a bill for the mortgage payment, use the loan account (long term liability) to enter the principal and an interest expense account (I would call it mortgage interest) to enter the interest amount.
You would not have an expense account for the principal (principal payments reduce liabilities and are not expensed)

To record annual depreciation use a journal entry
credit accumulated depreciation (a contra account under long term liabilities) and debit depreciation expense.

Hope this helps.
Karin

Quicken & Other Budget/Accounting Software

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Karin Hostetler

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I am a certifed member of QuickBooks® Professional Advisor group and can answer questions on Quickbooks® Basic and Pro, all versions through 2011. I do onsite, telephone and online consulting through my website at: http://www.karinhconsulting.com Have a complicated issue that you can't put into one question? Consider a one time FREE 60 minute phone consultation. (724) 557-4652

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I have worked with Quickbooks® since version 1, and have had a tip published on the Intuit website. I work exclusively with small business owners in setting up Quickbooks®, giving on-going support to tweak the reports, resolving data issues and correcting problems. I offer monthly, quarterly and yearly tune-ups to prepare the clients data for presentation to their CPA at year end.

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I have a degree in Administration and Management with 20 years of hands on business experience in many fields

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