Setting up mortgage for rental property

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Journal Entry Debit Credit
(A) 7 Park Ave Building $300k
(A) 7 Park Ave Land $100k
(E) Title Company Fees $10k
(L) Mortgage with Wells Fargo $280k
(A) Bank of America $130k

Notes:
- you need to break out land from building. You can depreciate the building but not land so they should be segregated on the balance sheet
- Mortgage with Wells Fargo is a Long-Term Liability account
- Bank of America is a Bank Asset account
- Title Company Fees is an expense account
- 7 Park Ave building and 7 Park Ave Land are Asset accounts

https://community.waveapps.com/discussion/4830/setting-up-mortgage-for-rental-property

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  • 13 days ago by vince