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Do I account for loans on an income statement?


I was trying to create an income statement and I part of the information was the company took out a loan for $80,000 on January 1st, 2008, paying 10% interest. On December 31st, 2008 the company paid both interest and principal on the loan. Do I account for that $80,000 anywhere on the income statement, or do I only account for the interest expense (of which I think is $8,000)? Thanks for any responses!

538 day(s) ago

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tranglu 		No because it wouldn't be a revenue, however you would put it under loan expense/interest expense. Something along those lines. Remember only revenue and expenses are on income statement.

Posted 538 days ago

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DorthyP 		try this site (i've used it): http://sitefinance3.notlong.com/4AANJYj

Posted 538 days ago

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