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L
lisa-2i-t-com
January 3, 2025
Question

Line of Credit

  • January 3, 2025
  • 1 reply
  • 5 views

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

    1 reply

    Rainflurry
    Rainflurry
    Level 11
    January 3, 2025

    @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.  

      L
      lisa-2i-t-comAuthor
      January 4, 2025

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

      Rainflurry
      Rainflurry
      Level 11
      January 4, 2025

      @lisa-2i-t-com 

       

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

       

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

       

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