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bonnie-sc-techse
September 27, 2021
Question

My client has an existing truck loan, and he placed it in the credit card account, when it should be in the long term liability account. What do I need to do?

  • September 27, 2021
  • 1 reply
  • 0 views
He also had a down payment so that needs to go to the fixed asset account, right? Also how do I deal with interest and principal on QBO? Depreciation?

1 reply

Rustler
Rustler
September 27, 2021

Create the liability account then do a journal entry, debit the CC, and credit the liability account
There should be a fixed asset account for the truck, and a sub fixed asset account for accumulated depreciation-truck.

the down payment should post to the truck fixed asset account
the loan value should post to the truck fixed asset account
See IRS pub 946 for depreciation

Loan payments are composed of principal and interest, you have to split them out when known each month

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bonnie-sc-techseAuthor
September 27, 2021

Thanks for your quick response. Could you please go into more detail on these steps?

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