We bought a new truck for $42k, put $5k down and the remaining financed. How do I go entering this purchase? Also, once I start making payments how would I record that as well? I have never had to do this until now. I reas a few post but just got lost. Pleas help!
Create the check for $5k. In the detail you will put $42k as a fixed asset - truck and a negative $37k long term liability - the bank loan. Net of check is $5k and everything is recorded (you add new each necessary account on the fly or beforehand but with zero opening balance)
When you make monthly payments they will consist of two parts - two line items. principal posting to the loan liability and interest posting to your interest expense account