Liquidity

Liquidity

When the money for the loan is received it is recorded as cash. Payments are not recorded until the actual payments are sent out. This will be recorded as a debit to a loan expense account and credited directly to cash. The interest is debited directly to an interest expense account and credited directly to cash for the same payment. A compound entry can be used for this purpose. There is no loan payable or interest payable accounts for cash basis accounting.

The film is "Tango and Cash".

Jack Palance looked directly into the camera and said the words "Cash, Tango! Tango, Cash!"

Using a credit card to obtain cash is NOT a good idea. If you need a cash loan it is better to negotiate this from your bank directly.