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I have a credit line attached to my business checking

I have a credit...

I have a credit line attached to my business checking account. When I transfer 50,000.00 from the credit account to my main operating checking account, do I record that as "income" to the business? ANd do I record it as a payable expense when I transfer it back later in the year? Or is it a seperate transaction. Im trying to keep good monthly records for my accountant.

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Answered in 19 minutes by:
3/19/2018
PDtax
PDtax, CPA, MBA
Category: Finance
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Experience: Tax professional and business consultant for 35 years.
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I'm PDtax. I'll assist.
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Loan proceeds are not income, but instead a liability. Loan payable, PDBank might be the account name. When you pay the bank, some is interest the rest reduced the loan payable.This will give you a running balance for the loan as well.I hope that helps. Positive feedback is appreciated, five stars is best. I'm PDtax.
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Customer reply replied 4 months ago
Not detailed enough.
I'm not sure what additional details I can type out, so I'll offer you a phone conference to discuss the additional details you need.
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 5,085
Experience: Tax professional and business consultant for 35 years.
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Andy4712
Andy4712, Accountant
Category: Finance
Satisfied Customers: 757
Experience: Business and accounting graduate.
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It is not income. It most likely would be a debit to cash and credit to loan payable.

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