General
Bank Loan Processing/Origination Fee
Recording the upfront fee charged by a bank to set up a new commercial loan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unamortized Loan Costs | Contra-Liability (+) | 1,000.00 | - |
| Cash in Bank | Asset (-) | - | 1,000.00 |
💡 Accountant's Note
Loan fees are usually not expensed immediately. They are deducted from the loan balance and 'spread' (amortized) over the life of the loan as interest expense.
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