Bookkeeping question on loan payments

[Omid Boloori]

Hi all,

I had a bookkeeping question for you buy-and-hold folks out there. This is probably a very basic question for the pros, but I'm  am just about to wrap up my first official year as a formal landlord, and wanted to see how others do this. This is a question that I should be asking my CPA, but I don't want to incur a $300 for a 5 minute answer... For reference, I'm using a cash basis, not accrual.

When making loan payments, I break up the line items as shown below. The Principle payment of $66.21 below is being credited against a Long Term Liability account. By doing this, my loan's outstanding principle value is always accurate. However, when looking at my profit and loss statement, the principal payments are not captured as expenses. That said, how can I do both? Meaning, how can I recognize principle payments as a credit against my Long Term Liability account while still capturing the line item as an expense on my P&L reports?

Hopefully I'm using the correct terms. I haven't touched a ledger since high school! 

Thanks,

Omid