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M
MASSBen
March 9, 2020
Question

Vehicle Purchase/Loan Payments

  • March 9, 2020
  • 1 reply
  • 0 views

I need help...my mind for some reason is having trouble with what my entries should look like as it's my first one looking like this.

We purchased a vehicle truck that is financed so I have a down payment, a loan and monthly payment entries to record.

Down Payment - $20,000

Loan Principal - $108,723

Loan Interest - $7,020.81

Monthly Payment - $1,929.08

 

I know I have to record the asset and the loan.  Do I include the interest in the value of the asset or is that simply recorded as Interest Expense each month?

 

 

1 reply

R
Rochelley
April 8, 2020

I'm assuming this is an incorporated company?  If you're not incorporated, then it is a completely different story.  Please refer to a previous thread where I posted a detailed reply to your question.

 

https://quickbooks.intuit.com/learn-support/en-ca/pay-bills/re-how-do-i-record-a-used-truck-with-interest-tacked-on-to-the/01/364225#M650

 

Hope it helps :)

 

 

 

 

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