So we bought a piece of equipment for $48,000 and had it for a year or two before we set up quickbooks.

We pay a monthly payment that goes against the long term liability. (Part of this payment includes interest, but we don't break it out. At the end of the year, the bank sends us a statement that provides the interest paid Year To Date.

How would we enter this interest that has been paid (Paid with the loan payment)?

Would we
DR Interest Expense
CR Specific Long term liability (to reduce what we have paid and posted on the specific Asset, that should have been separate as Interest Expense?

Please help!
Thanks!