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Brianna-B
March 12, 2019
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How to Record "Lease to Own" Computer asset

  • March 12, 2019
  • 1 reply
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We recently purchased a few computers but we are leasing to own over 48 month period. I am having trouble balancing the JE for the monthly payments.

I have put the original purchase price (total asset amount) into a "Lease Obligations" account. Then each month I have set up a JE to credit the Lease Obligation and Debit the "Computer Asset" Account. Where I am having trouble is balancing the actual payment that will come out of our account. Say it's $50, $50 will be credited to our bank account but I dont know where the debit should go.

If I put it back into lease obligations the total Lease will never decrease and if I put it in Computer asset it will double the amount.

any help would be apppreciated!

Best answer by Rustler

Computer asset should be a fixed asset type account

open the register for the loan account, make a new first entry, or edit what is there, the full amount of the purchase agreement should be entered as an increase, and select the computer fixed asset account in the account block and save

when you make payments, you use the loan account as the expense for the payment, check or credit card payment.

Journal entries should be the exception when using QB, they often do not work as you think they should, and they never work for inventory, when you use inventory type items. It is much better to use the forms on the home page the way QB is designed to be used.

1 reply

Rustler
RustlerAnswer
March 12, 2019

Computer asset should be a fixed asset type account

open the register for the loan account, make a new first entry, or edit what is there, the full amount of the purchase agreement should be entered as an increase, and select the computer fixed asset account in the account block and save

when you make payments, you use the loan account as the expense for the payment, check or credit card payment.

Journal entries should be the exception when using QB, they often do not work as you think they should, and they never work for inventory, when you use inventory type items. It is much better to use the forms on the home page the way QB is designed to be used.

    A
    accounting76
    March 12, 2019
    Can you please tell what are the steps to :select the computer fixed asset account in the account block and save.
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