How to record a loan payment in Accounting Professional, in Accounting Express, and in Small Business Accounting

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Article ID: 937698 - View products that this article applies to.
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INTRODUCTION

This article describes how to record a loan payment in Microsoft Office Accounting Professional, in Microsoft Office Accounting Express, and in Microsoft Office Small Business Accounting 2006.

MORE INFORMATION

This procedure describes how to record a loan payment. This procedure assumes that the vendor is the lender, and that the long-term liability account is the loan. If you have created the vendor and the long-term liability account, go to step 3.
  1. Create the lender as a vendor. To do this, follow these steps:
    1. On the Vendors menu, point to New, and then click New Vendor.
    2. In the Vendor name field, type the name of the lender.
    3. Leave the $0.00 value in the Balance field.
    4. Enter any other information that you want to track about the vendor.
    5. Click Save and Close.
  2. Create the loan as a long-term liability account. To do this, follow these steps:
    1. On the Company menu, click New Account.
    2. Click Long-term liability, and then click OK.
    3. In the Account name field, type an account name.
    4. In the Status section, verify that the Active check box is selected.
    5. In the Opening Balance field, enter the loan amount.
    6. Enter any other information that you want to track about the long-term liability account.
    7. Click Save and Close.
  3. Pay the loan, and then record the payment to the lender. To do this, follow these steps:
    1. On the Banking menu, click Write Checks.
    2. In the Bank Account field, select the account from which you are paying the loan.
    3. In the Pay to field, select the vendor that is the loan lender.
    4. In the No field, type the check number.
    5. In the Date field, select the date on which you are writing the check.
    6. In the Amount field, type the amount that you are paying on the loan.
    7. If you want to print the check, click to select the To be printed check box.
    8. Under Items and expenses, select the long-term liability account in the Name column of the first row.
    9. In the Unit Price column, type the same amount that you typed in step 3f.
    10. Click Save and Close.

Properties

Article ID: 937698 - Last Review: September 10, 2011 - Revision: 4.0
APPLIES TO
  • Microsoft Office Accounting Professional 2007
  • Microsoft Office Accounting Express 2007
Keywords: 
kbhowto kbmbsmigrate kbexpertisebeginner KB937698

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