Ask Experts Questions for FREE Help !
Ask
    Marleigh2667's Avatar
    Marleigh2667 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 8, 2014, 02:42 PM
    Is a construction loan booked as an asset or liability
    I am trying to "book" a construction loan - how do I set up the loan and closing expenses then record the subsequent draws that are made during construction?
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
    Expert
    		  
    #2

    Apr 8, 2014, 03:13 PM
    If you are improving your home with a reno, the loan will be an asset, not a liability. Is this what you are doing ? If so, your contractor will have to give you a reckoning every time he needs a draw to buy materials.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Asset or liability? [ 1 Answers ]

Hi I'm having trouble going over a few past papers about whether each of these goes under liability or asset and which asset and liability it comes under. This is what I have come up with but I am not sure whether it is correct, could someone please tell me if I have made any mistakes thanks. ...

Asset, liability, equity [ 1 Answers ]

How do you find: Equity Dec 2009 ,when this is what you are given: December 31, 2008 Assets 46,000 Liabilities 37,720 December 31, 2009 Assets 49,000 Liabilities ?

View more questions Search