Loan & Loan Manager QB04

[Mark]

Here is the deal... we need to account for a loan from a family
member. 01/03 we got $5000 and then on 07/01 we got an additional
$2500. We want to pay 8% APR on this loan and will make no payments
for the first year. Then we want to pay off the loan in the second
year (12 monthly payments still 8% APR).

The Loan Manager in QB04 seems like it will work fine makeing the
payments in the second year but I'm not sure what to do about the
interest from the first year. Should I just make general journal
entries every month for the interest in the first year? $33.33 for the
first 7 months and then $50 for the next 5 since we added another
$2500 to the loan.

From this point loan manager should be able to take care of the 12
payments to pay off the loan.

Does this sound right?

Thanks in advance!

[Peter Saxton]

On 5 Dec 2003 00:52:43 -0800, breez_@hotmail.com (Mark) wrote:
Here is the deal... we need to account for a loan from a familymember. 01/03 we got $5000 and then on 07/01 we got an additional$2500. We want to pay 8% APR on this loan and will make no paymentsfor the first year. Then we want to pay off the loan in the secondyear (12 monthly payments still 8% APR).The Loan Manager in QB04 seems like it will work fine makeing thepayments in the second year but I'm not sure what to do about theinterest from the first year. Should I just make general journalentries every month for the interest in the first year? $33.33 for thefirst 7 months and then $50 for the next 5 since we added another$2500 to the loan.From this point loan manager should be able to take care of the 12payments to pay off the loan.Does this sound right?Thanks in advance!

It all depends how you charge interest. APR is a way of comparing
different methods but it doesnt explain how you charhe the interest.


--
Peter Saxton from London
peter@petersaxton.co.uk