Taxes/Accounting a Bond-For-Deed transaction

Hello,

I recently closed on a BFD deal and looking for direction on correctly setting up journal entries, to make it easy at tax time.

In a nutshell...

We hold a mortgage on the property with a principal of $150k, 4.25%, 30yr amort (liability)

The BFD sale price was $300k, with a $45 downpayment, $255k financed at 5.5%, 25yr amort, 3yr balloon (asset).

All transactions are run through an escrow agent, and we just collect the net difference monthly (~$325 or so).   This is our first BFD deal; same for our bookkeeper.

We would be very greatful for any guidance on how to property treat the initial downpayment, and monthly transactions.

Thank you!

Kenny Boyd