Please pardon my outdated knowledge of accounting. It's been nearly 15 years since I've prepared journal entries. I've started a business and am trying to handle some of the standard journal entries on my own, rather than pay our accountant to do everything (yes, he does review things on a monthly basis but I'm doing the bookkeeping on a daily basis).
Our business will be taking an short-term loan (hoping to repay within 3 months) from a lender to serve as a cash reserve in case we experience more delays before our grand opening. We are hoping we won't have to tap these funds, but obviously want it readily accessible in case we do need it.
My question is how to handle the journal entries to account for receipt of the loan, if/when we tap into it to pay for general operating expenses (rent, utilities, etc), and when we repay the loan.
Also, are there any monthly closing entries I need to perform?
Thanks so much for your input and expertise.
Our business will be taking an short-term loan (hoping to repay within 3 months) from a lender to serve as a cash reserve in case we experience more delays before our grand opening. We are hoping we won't have to tap these funds, but obviously want it readily accessible in case we do need it.
My question is how to handle the journal entries to account for receipt of the loan, if/when we tap into it to pay for general operating expenses (rent, utilities, etc), and when we repay the loan.
Also, are there any monthly closing entries I need to perform?
Thanks so much for your input and expertise.