Systemwide accounting procedures
Accounting Integrated Statewide Record System procedures
Long-term Debt
Debt service payments are principal and interest paid to the system office (reimbursement for a payment made centrally) or to a private vendor for capital debt. An institution should split the payment into principal and interest. The object codes used in a transaction depend on whether the payment is for a bond or loan debt, or equipment capital lease. The proper accounting entries are as follows:
Bond or Loan Debt
| Payment Voucher Transaction | |||||
|---|---|---|---|---|---|
| DR | 6000 | Principal on Debt | |||
| DR | 6100 | Interest on Debt | |||
| CR | 8110 | Cash | |||
Equipment Capital Leases
| Payment Voucher Transaction | |||||
|---|---|---|---|---|---|
| DR | 4100 | Capital Lease - Principal | |||
| DR | 4110 | Capital Lease - Interest | |||
| CR | 8110 | Cash | |||
If you have questions or comments please email us (accounting@so.mnscu.edu) or refer to the staff directory link at the top of this page for additional contact information.
