Equipment Finance Agreement

Thanks for joining the Community, acnt. I appreciate your detailed information.
 

You can set up a asset and liability accounts from the Chart of accounts screen.
 

Here's how:
 

1. Use your Gear icon, then go to Chart of accounts.
2. Click New.
3. Choose New account or New category.
4. Enter any necessary details. You'll be able to specify an account type (asset/liability/etc.).
5. When you're finished, select Save.

In regard to your other questions about making things balance like you'd prefer them to, and how you should be setting up specific accounts, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 

Here's how it works:
 

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   
   

Once you've found an accountant, they can be contacted through their Send a message form:
 

I've also included a detailed resource about working with asset accounts which may come in handy moving forward: Set up an asset account
 

Please don't hesitate to send a reply if there's any additional questions. Have a great Tuesday!

@acnt 

If you know the term (x years), the total interest to be repaid ($20K), and your monthly payment, you can determine the applicable interest rate by using an interest rate calculator.  Offset the fixed asset cost ($100K) with the loan payable liability of $100K and book the interest expense as each payment is made based on the amortization schedule.  

I actually have a similar situation. I'm new to equipment finance agreements and accounting in general. I did something similar with my initial journal entry, however, I set up the liability account slightly different. I accounted for the full amount of the contract owed(asset cost + fixed interest due) with liability account credit. I then debit asset for cost of equipment. I also then debit interest expense for interest owed to balance asset/liability even though the interest has not yet been paid to balance the journal entry. My thought was I need to represent full amount of liability. Reviewing may work, I have been searching to determine I may have done this incorrectly. Should I follow the stated method and only credit liability account for cost of asset, and account of interest as its paid with each payment? Not sure if it is exact situation but sounds similar to original question posed here.