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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
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Experience:  Certified Public Accountant
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I am trying to book an entry of accounting. My client has a

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I am trying to book an entry of accounting. My client has a line of credit for 150K that chase gave him. he has only unsed 50K for repair & maintenance. how should it reflect. The expence, the 100K left on the line of credit ect.......

Hi, my name is Mark. I will be happy to help you with your question.

So out of the $150,000 line of credit on $50,000 has been used?

The entry if I understand your post correctly would be the following:

Repairs and maintenance $50,000

Line of Credit $50,000

The unused amount would not be reflected on the financials. It would be similar to a credit card that has a $5,000 limit but only a $1,000 balance. On the balance sheet the Credit card would show as a liability of $1,000.

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Please let me know if you have any questions or need clarification I would be happy to help. Also please let me know if I misinterpreted your question.

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