If you pay the mortgage on the 1st, and accrue on the 31st, what are the accrual entries for the general journal?
My regular payment entries look like this:
(Dr)Interest Expense - Mortgage 1,594.50
(Dr)Mortgage Note Payable 1,105.84
(Dr)Mortgage Tax Expense 500.00
(Dr)Mortgage Insurance Expense 250.00
(Cr)Cash 3,450.34
So far, my accrual entry looks like this:
(Dr)Interest Expense - Mortgage 1,594.50
(Dr)Mortgage Note Payable 1,105.84
(Dr)Mortgage Tax Expense 500.00
(Dr)Mortgage Insurance Expense 250.00
(Cr)Interest Expense - Mortgage 1,594.50
(Cr)Mortgage Note Payable 1,105.84
(Cr)Mortgage Tax Expense 500.00
(Cr)Mortgage Insurance Expense 250.00
My issue is that I have a "Mortgage Note Payable" in the debits and in the credits and I don't know what it should be called in the credits if it is usually a payable in the debits or if I even include it at all when accruing?
Can anyone help? Thanks!
Read more: What are journal entries to accrue mortgage note payment?
