Entries for selling house on contract

We have an LLC that owns a house outright. Selling it to a couple and carrying the financing. How do you record 1) the sale and 2) the monthly payments? Thanks.
Reply to
"WvHmmngbrd" wrote
CR the house at your carrying cost (basis) DR for any accumulated depreciation - Both of those need to come off the books DR the receivable for the loan amount - That needs to be booked at the loan amount DR cash for any received at closing or before (downpayment) DR for any closing expenses (mostly from the HUD-1) DR or CR for loss or gain on the sale. ----there may be other items that remain to be resolved.
DR cash as payments are received CR the note for the principal portion of each payment. CD interest income for the interest portion of each payment.
Reply to
Paul Thomas, CPA

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