Timeline for Money Saved on finance charges
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| May 20, 2020 at 16:46 | comment | added | finance | Fee avoidance is not considered income on a balance sheet. | |
| Aug 25, 2015 at 1:37 | comment | added | base64 | Your Opening Balance (of Equity) is negative because you spent all the loan proceeds before the start of the year, leaving no money at the bank (i.e. you didn't have enough assets). Opening Balance will never change, unless you "Close Books", i.e. combine Opening Balance, Retained Earnings (Income/Expense), Reserves into a single Opening Balance for Next Year. Opening Balance represents your initial situation, not your current total equity. Now that you have repaid your loan, your Income/Retained Earning must be huge, and Total Equity should be positive. | |
| Aug 25, 2015 at 1:31 | comment | added | JpbLucky24 | Thank you for your response base64. I understand that and that is how I treated the entire transaction. But so does a loan always cause negative equity? What would bring an OpBal account out of the negative? | |
| Aug 25, 2015 at 1:28 | answer | added | JTP - Apologise to Monica♦ | timeline score: 2 | |
| Aug 25, 2015 at 1:22 | comment | added | base64 | Interest is accrued over time. Each month's interest is Outstanding Principal x Interest Rate. Your Loan is paid off when Outstanding Principal reaches $0. | |
| Aug 25, 2015 at 1:14 | comment | added | JpbLucky24 | The amount I saved on interest charges factored over the term by paying off early. It was a 15 year loan I paid off in 6 years. Can't I track that in an account as income? or am I totally thinking of that wrong. | |
| Aug 25, 2015 at 0:57 | comment | added | base64 | I don't understand what "interest savings" refers to, and what it has to do with Opening Balance. | |
| Aug 25, 2015 at 0:55 | review | First posts | |||
| Aug 25, 2015 at 3:31 | |||||
| Aug 25, 2015 at 0:52 | history | asked | JpbLucky24 | CC BY-SA 3.0 |