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    cagangloff's Avatar
    cagangloff Posts: 1, Reputation: 1
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    #1

    Feb 27, 2009, 07:48 AM
    Land loan entry
    We have land appraised at 3,300,000. We took out a loan this week for 1,650,000 against the land. What is the journal entry to set up the asset and liability on the books/
    Booky's Avatar
    Booky Posts: 24, Reputation: 1
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    #2

    Mar 1, 2009, 12:19 PM

    If this land is being placed into business use, then the Asset for Land would be a debit for the value of the land, there would be a credit for the value of the loan debt and the remaining balance would be a credit to the equity of the business.
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