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February 2, 2023
Question

How do I categorize the down payment made on a Fixed Asset?

  • February 2, 2023
  • 1 reply
  • 0 views

I recently purchased some new equipment for my company that cost us $10,000. I made a $5,000 down payment through wire transfer and financed the remaining half with a bank. The $5,000 wire transfer appears on my transactions on Quickbooks and I want to know how to categorize the down payment made. Will the down payment appear on my profit and loss for the year? 

 

I also created a fixed asset with the machine name and gave it an opening balance of $10,000. Is this incorrect? Thank you!

1 reply

February 28, 2023

Debit Fixed assets 10,000 

Credit checking 5,000

Credit Note payable bank 5,000