In a mortgage payment transaction, which component is not included in the accounting entry?

In a mortgage payment transaction, the component that is not included in the accounting entry is deferred revenue. This is because deferred revenue refers to payments that have been received but not yet earned. In the context of a mortgage payment, the transaction typically consists of interest expense, principal repayment, and the liability account for mortgage payable.

When making a mortgage payment, the business or individual is reducing their mortgage payable balance by the principal portion of the payment, while also recognizing the interest expense associated with borrowing the money. Deferred revenue, on the other hand, is a liability for future services or products to be delivered, which does not relate to the payment of a mortgage. As such, it does not appear in the journal entries for a mortgage transaction.