What is the Journal Entry for Real Estate Mortgages already in effect?
Posted on June 25th, 2010 in Renting & Real Estate | 1 Comment »
Rosa asked:
I need to record mortgages that are already in effect (cleaning up the books). How do I do this without debiting cash? Debit Building (Fixed Asset) and Credit Mortgage Payable? This doesn't account for the fact that the current mortgage isn't the purchase price of the real estate.
Folsom Real Estate
I need to record mortgages that are already in effect (cleaning up the books). How do I do this without debiting cash? Debit Building (Fixed Asset) and Credit Mortgage Payable? This doesn't account for the fact that the current mortgage isn't the purchase price of the real estate.
Folsom Real Estate
One Response
Maryland Real Estate
First I need to know why it was not on the books in the first place and what type if business you are talking about. If it is a corporation is the mortgage in the name of the owner or the corporation??? If a proprietorship it really doesn’t matter. Just debit building and credit mortgage. Your basis will just be different than the book value. If it is a corporation and the mortgage is in the owners name it does not belong on the corporate books. If it is on the corporate name then you need to record it properly and probably restate prior periods for depreciation interest etc.