How to record down payment and loan amounts of vehicle that is owned by business owner?
Hi! I'm looking for advice on how to treat the following:
Put down $1,000 down payment on a vehicle, using the business account.
Got a loan for the remainder of the vehicle purchase price, under my own name (business owner), not the business itself.
Loan payments for this vehicle come out of the business account.
Currently I have the $1,000 deposit listed under 'Expense', and Loan payments split by 'Expense' for Interest payments and 'Current liabilities' for the principal loan amount.
I have not yet set up a Long-term liability account for the remainder of the loan, and I recognize that if I am recording a liability, I need to balance this with an asset. And since the company does not own the vehicle, I don't think I can put the vehicle as an asset.
Any help would be appreciated as to how I should be treating this!!