now that the PPP loan has been forgiven, what next?

[bjwhitson]

We received notice from our lender that our PPP loan has been forgiven - YAY! Now what??

The loan amount is reflected on the Balance sheet under Long Term Liabilities, Mortgages & Loans.

The transactions that was initially entered is -
CR 01-1110-000 Operating Account $15,000
DR 01-2620-100 PPP funds rec'd $15,000

I'm not sure what the next entry should look like to get the loan off the books.

Thanks for any advice! (Using version 12.2)
Betsy

[NeilZ]

We received notice from our lender that our PPP loan has been forgiven - YAY! Now what??

The loan amount is reflected on the Balance sheet under Long Term Liabilities, Mortgages & Loans.

The transactions that was initially entered is -
CR 01-1110-000 Operating Account $15,000
DR 01-2620-100 PPP funds rec'd $15,000

I'm not sure what the next entry should look like to get the loan off the books.

Thanks for any advice! (Using version 12.2)
Betsy

I believe when I first gave advice on this I mentioned to make it a liability, as you did, and later you will turn it into income. So you will do a DEBIT against the liability, and a CREDIT against miscellaneous income. If you don't have such a MISC income account, create one.

That said, I'm hoping that you have your debits and credits accidentally switched in that initial transaction when you reproduced it here, as you DEBIT the asset account to show an increase, and CREDIT the liability to do the same. Otherwise you've shorted your asset account, and have a negative balance in the liability.

[bjwhitson]

Thanks, Neil,
You were right - I did have the DR and CR reversed in that transaction - the original one was correct.

Thanks for your answer - as always, spot on!
Betsy