Gibbo2
Level 1

How to record business loan interest?

I have a business loan with weekly payments and monthly interest. I have account set up for loan as a long term liability and a checking account where payments come out to pay loan instalments. Bank accounts are linked to quickbooks online. I can match up weekly instalments but not sure how to record the monthly interest? I assume I have to do a journal entry from the loan account to the interest expense account but I cannot balance the amount which is $40.07. Help please