401k loan question

[David Anderson]

Hey guys,

First, thanks for the great product.  I used GNUCash a few years back.
After a nasty divorce my finance fell apart.  I'm rebuilding things now and
trying to get all my data back into GNUCash.  I'm only starting from
1/1/2007 - using opening balances, etc.  In 2006 I kept very little track of
my finances.

The concepts guide and the email archives have helped me avoid a lot of
questions, but I do have one in regards to a 401k loan.

I took out a 401k loan a few years back.  The loan was for $1500.  The issue
date was 1/31/206, estimated payoff 2/1/2011, outstanding principal is
$1223.67, and the monthly amount is $30.42.  I believe the monthly finance
charge is $8.38 and the rest goes to paying down the principal.

What I like about the 401k loan is it's all coming back to me, including the
interest.  I understand taking $1500 out of my retirement for 5 years will
affect my investments over the longterm.  Sadly I had no choice at the time.

Anyway, my question is in regards to recording the transactions in GNUCash.

My paycheck is entered into my checking account as a split transaction.  The
401k part:

Liabilities: Loans: 401k Loan - $30.42

Then, in Liabilities: Loans: 401k Loan I will enter a separate transaction
for the interest charge.  Even though the interest is coming back to me, I
must account for it in order to keep the balance proper.

Then, in 401k Loan I have separate transactions to the various funds the
money is being invested back into.  This helps keep my 401k funds at the
proper balances.

Question #1: I have the interest charge in 401k Loan coming from 'Expenses:
Interest Charges'.  Is that right?  I am a bit confused by that, but I can't
imagine it would come from Income.

Question #2: Any easier way to account for this?  The two separate steps -
interest charge and 401k funds - seems like a lot of work.  I don't mind so
much and it's nice in regards to help me stay on top of things.  But I'm
curious nonetheless.

Thanks.

Dave