Help...customer had two lines of credit which were both renewed in early 2005. In late 2005 both lines were merged into a new loan plus an increase in principal. A new loan number was generated which included both previous balances plus the increased amount. My question is, should we have reported the total NEW loan amount or only the increased amount? Any suggestions you may provide will be appreciated.

Our thought process is that since a new loan number was generated we should've reported it for the NEW amount.

In my opinion, you would report the new amount...

You actually can do it either way. You can report the two renewals plus the increase or you can report it all as one. I would opt for the second way. Make sure if you do the second way that you remove the renewals if you had alread entered them into your LR.

BTW, isn't it kinda late to be worrying about 2005 loans?

would it be wrong to have reported both...two separate lines earlier in the year, and then when the two lines were consolidated into ONE line of credit?

Yes. You are supposed to report renewals of lines of credit subject to the once per year limit. In this case it sounds like you increased the amount when you combined the two lines. So you could have reported both renewals and then the increased amount later in the year. But you shouldn't have report both renewals and the entire combined amount plus the increase. As KC also pointed out, you could have reported only the new combined line including the increased amount as an optional way of reporting the transactions.