How to have liability acrue interest but not show as payment?

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Posted by Chips on October 29, 2008, 7:08 pm Please log in for more thread options Using Contractor 2006. I have some short and long term liablilities that I want to add interest to, to increase the amount of the liability. I don't want the accrued interest to show up as an expense in a (cash basis) P&L. I want it to show up as an expense in the future when payments are actually made to the lendor and the interest is actually paid. I have an expense account for loan interest, and if I do a GJE that adds the interest to the liablility, and has the added interest come from the interest expense account, it shows up as an expense paid, with the P&L in either accrual or cash basis mode. But the interest has not been paid to anyone, it's just adding to the balance of the liability. Is there a type of account I can set up to assign accrued but not paid interest to that will not show up in a cash basis P&L? Any suggestions? Greg Chapp Posted by David Smith on October 30, 2008, 4:59 pm Please log in for more thread options > Using Contractor 2006. > I have some short and long term liablilities that I want to add interest > to, to increase the amount of the liability. > I don't want the accrued interest to show up as an expense in a (cash > basis) P&L. I want it to show up as an expense in the future when payments > are actually made to the lendor and the interest is actually paid. > I have an expense account for loan interest, and if I do a GJE that adds > the interest to the liablility, and has the added interest come from the > interest expense account, it shows up as an expense paid, with the P&L in > either accrual or cash basis mode. > But the interest has not been paid to anyone, it's just adding to the > balance of the liability. > Is there a type of account I can set up to assign accrued but not paid > interest to that will not show up in a cash basis P&L? > Any suggestions? Other Asset Account called Unpaid Interest? Posted by Chips on October 31, 2008, 11:46 am Please log in for more thread options I would not have thought of this, as I would not think of it as an asset, but I tried this, and it does not work for me, as it then skews the balance sheet. Thanks, Greg Chapp >> Using Contractor 2006. >> >> I have some short and long term liablilities that I want to add interest >> to, to increase the amount of the liability. >> >> I don't want the accrued interest to show up as an expense in a (cash >> basis) P&L. I want it to show up as an expense in the future when >> payments are actually made to the lendor and the interest is actually >> paid. >> >> I have an expense account for loan interest, and if I do a GJE that adds >> the interest to the liablility, and has the added interest come from the >> interest expense account, it shows up as an expense paid, with the P&L in >> either accrual or cash basis mode. >> >> But the interest has not been paid to anyone, it's just adding to the >> balance of the liability. >> >> Is there a type of account I can set up to assign accrued but not paid >> interest to that will not show up in a cash basis P&L? >> >> Any suggestions? >> > Other Asset Account called Unpaid Interest? > Posted by Elaine on October 30, 2008, 6:13 pm Please log in for more thread options Put a future date on your accrued interest entry. Posted by Haskel LaPort on October 30, 2008, 6:33 pm Please log in for more thread options > Using Contractor 2006. > I have some short and long term liablilities that I want to add interest > to, to increase the amount of the liability. > I don't want the accrued interest to show up as an expense in a (cash > basis) P&L. I want it to show up as an expense in the future when payments > are actually made to the lendor and the interest is actually paid. > I have an expense account for loan interest, and if I do a GJE that adds > the interest to the liablility, and has the added interest come from the > interest expense account, it shows up as an expense paid, with the P&L in > either accrual or cash basis mode. > But the interest has not been paid to anyone, it's just adding to the > balance of the liability. > Is there a type of account I can set up to assign accrued but not paid > interest to that will not show up in a cash basis P&L? > Any suggestions? > Greg Chapp Set up another Accounts Payable account called Accrued Interest. If you post the accrual to this account it will not show up on cash basis reports. > This Thread        Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape How to have liability acrue interest but not show as payment? Chips 10-29-2008  Re: How to have liability acrue interest but not s... David Smith 10-30-2008  Re: How to have liability acrue interest but not s... Chips 10-31-2008  Re: How to have liability acrue interest but not s... Elaine 10-30-2008  Re: How to have liability acrue interest but not s... Haskel LaPort 10-30-2008  Re: How to have liability acrue interest but not s... Chips 10-31-2008  Re: How to have liability acrue interest but not s... Haskel LaPort 10-31-2008  Re: How to have liability acrue interest but not s... Chips 10-31-2008 Related Posts Subject Date Long Term Liability needs to add interest to balance February 2, 2009, 7:54 pm Handling Interest February 27, 2006, 9:01 am How to record bank Interest March 31, 2007, 9:30 am interest earned in quickbooks lite August 21, 2005, 11:16 pm Interest recevied from Canada Revenue Agency April 17, 2010, 4:39 pm Loan payments: can QB Pro split: interest vs. principal? 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