Hello,

Loan details
Loan amount: $25,000
Interest: 12% per annum
Loan term: 3 years

Face value: $25,775.69
Face value includes $25,000 borrowed, $25 service fee and $750.69 loan insurance.

General journal entry on receipt of the loan
Dr. Cash $25,000
Dr. Loan Fees $775.69
Cr. Loan Payable $25,775.69

'Loan Fees' is classified as an asset account? Is that correct?

General journal entry for 1st loan payment
Dr. Loan Payable $547.73
Dr. Interest Expense $352.27
Cr. Cash $900

How should I amortize/record the loan fees?

Thank you in advance.