Question:
I received a payoff from the bank with the principal amount of our long term loan, which matches our balance sheet liability. The payoff also included interest. When I clear this off the books with another long term loan. I would:
Debit Current liability and also debit the interest expense for this loan? I guess my question is, do I pick up all this interest expense in one month on our P&L?
I also have loan origination fees for the new loan that I should be amortize.
Any clear up in thought is appreciated!
I received a payoff from the bank with the principal amount of our long term loan, which matches our balance sheet liability. The payoff also included interest. When I clear this off the books with another long term loan. I would:
Debit Current liability and also debit the interest expense for this loan? I guess my question is, do I pick up all this interest expense in one month on our P&L?
I also have loan origination fees for the new loan that I should be amortize.
Any clear up in thought is appreciated!