How to properly add a mortgage?
AdeleHomes
Member Posts: 1
I just started out today using Wave and I love it thus far. My business is a property I purchased and rent out, pretty basic. I am struggling with how to add my mortgage on the house into Wave properly.
I have online access to my mortgage and I connected my online account with Wave, but I don't know how to properly categorize it, (It defaulted to Owners Equity, which doesn't seem right because the value that shows up in Wave is what I owe, not the equity I have in the property.)
If connecting my account isn't the way to go, that's fine, I can set it up manually, I just don't know where to start. Any advice on how to add the liability of loan in general (essentially my mortgage balance), as well as the investment I made to purchase it (down payment), and the equity every month I gain as a part of my mortgage payment (principal), as well as the expense of the interest that is paid every month.
Comments
@AdeleHomes,
When starting out you will need to post your property to assets as well. If you want, through out some numbers, I'd be happy to give you the journal entry. Cost of property, cash transferred to business account, mortgage balance. Anything else you think is relevant.