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?
