Canada Question regarding Financing and collecting interests for my client


Joined
May 27, 2020
Messages
2
Reaction score
0
Country
Canada
Hello accountants community!
So I have a client here and I'm supposed to do his books on quick books online.
Now my client sells renovation jobs as a service, and he FINANCES his clients for up to 15% of the price of the job until they pay the full amount.
Once the client has paid the amount in full, the owner also collects INTEREST on the loan he fronted them.
Now my question is; what journal entries would you do to record this operation at the moment where he grants the 15%, then at the moment he gets paid for the job + interest on that 15%.
to make things simpler, I can give you an example;
January 15 2020: Company gets a client for a 1000$ job.
February 15 2020: Company comes to an agreement with client to do the job and fronts him 150$ to begin the job.
March 15 2020: Client pays the company 1020$ which is 1000$+20$ interest for the loan.
And if you can, give me guidelines on how to enter the operation on quick books please?
Thank you so much in advance and have a nice day :)
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,082
Reaction score
283
Country
United States
For 2020
Jan 15, Feb 15 (Saturday), March 15 (Sunday)
Looks like a homework question to me........
 
Joined
May 27, 2020
Messages
2
Reaction score
0
Country
Canada
It's an example to make things simpler. This is not for a homework, it's for a client.
 
Ad

Advertisements

AGH the CPA

VIP Member
Joined
Jun 16, 2017
Messages
132
Reaction score
19
Country
United States
It's an example to make things simpler. This is not for a homework, it's for a client.
If you are doing this for a client, you should have some basic understanding of the relevant accounting entries. Why dont you post what you THINK should happen and we'll help you out from there?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top