Go to your Chart of Accounts, click the drop-down for Account in the bottom left and choose New. Select the radio button for Loan when asked to choose the account type. Click Continue. Give your account a good name (i.e. First Bank LOC), add Optional items if necessary then click Save & Close. There are a few ways you can record the LOC in your books but the easiest may be with a journal entry. Go to Company, Make General Journal Entries. Enter the date the LOC was deposited into your bank account. Debit your bank account and Credit the LOC account for the total amount. Then, in the future, as you make payments on the LOC, you will book the expense from your bank account (I assume) to the LOC account.
