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issue cost

This topic has 5 replies, 3 voices, and was last updated 11 years ago by MikeLittle.

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June 4, 2013 at 4:43 pm #129052
captmario
Member
- Topics: 59
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Hello mike, the issue cost on loan, where is it treated in financial statements?
its deducted from Loan in LTL and where else?
June 4, 2013 at 4:57 pm #129070
tammi
Member
- Topics: 3
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I guess the journal entries are dr liability cr cash, not sure though 🙂
June 4, 2013 at 5:56 pm #129117
MikeLittle
Keymaster
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Has it been paid? If yes, credit cash
If no – credit liabilities
June 4, 2013 at 7:04 pm #129166
captmario
Member
- Topics: 59
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they said 25 mil loan, 1 mil issue cost added into admin exp, so i reversed admin by deducting 1000 from it. what if question is silent and just says ” issue costs were 1000 and not accounted for?
June 4, 2013 at 7:22 pm #129177
MikeLittle
Keymaster
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If question says “The issue costs have not yet been accounted for” it must mean that they have not yet been paid. The double entry would therefore be Dr Loan Credit Current liabilities (the issue costs amount to be paid in the near future)
June 4, 2013 at 7:24 pm #129178
MikeLittle
Keymaster
- Topics: 27
- Replies: 23306
If question says “The issue costs have not yet been accounted for” it must mean that they have not yet been paid. The double entry would therefore be Dr Loan Credit Current liabilities (the issue costs amount to be paid in the near future)
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