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General Accounting Discussions: LINE OF CREDIT J/E

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    • CommentAuthorlelis
    • CommentTimeJun 6th 2007
     
    I NEED TO KNOW THE J/E FOR A PAYMENT TO A LINE OF CREDIT. I HAVE TO MADE MONTHLY PAYMENTS TO THE LIABILITY BUT I DONT KNOW TO WHAT EXPENSE OR BANK ACCT ENTER IT. I KNOW FOR SURE THAT I HAVE TO DEBIT THE LONG TERM LIABILITY.
    • CommentAuthorMrMatt
    • CommentTimeJun 7th 2007
     
    Credit Cash
    • CommentAuthormacc2101
    • CommentTimeJun 20th 2007
     
    I believe if you just received money for a line of credit, you would debit cash cause you are adding to it. I also believe it depends on what kind of line of credit detemines where the credit is going. Remember expense accounts and revenue are contra asset accounts that close out each period. Don't get those confused, with cash and liabilities.

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