USA Balance Sheet: Residential Accounting

[katherine.w2]

Hello,

It is up for discussion whether or not to show the mortgage interest payments on the balance sheet or not. Why would you should a mortgage interest payment on the balance sheet and why wouldn't you?

From my personal experience we should be showing our escrow balances.

 

[bcolorado]

Interest payments on a mortgage do not change the amount due (the liability) of a mortgage, therefore it would not affect the mortgage balance on the balance sheet. When you make your mortgage payment each month, you debit interest expense, debit mortgage payable and credit the cash or checking account. And yes, you could also put the escrow amounts. I only do this once a year for simplicity sake.