cancel
Showing results for 
Search instead for 
Did you mean: 
egonzalez
Level 1

How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?

Since the vehicle is already on the balance sheet as a fixed asset, should i depreciate its value?  If so, according to what timeline? 60 months?

Solved
Best answer October 19, 2018

Best Answers
Rustler
Level 15

How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?

Yes it is a fixed asset, and the payment you made should post to that same account

yes you calculate and post annual depreciation to a fixed asset sub account for the car called accumulated depreciation-car

download IRS pub 946, depreciation it has the tables and % per year for depreciation.

journal entry to make the posting

debit depreciation expense
credit accumulated depreciation-car

I prefer to set up the FA account sturcture this way (all accounts are FA accounts

Car (do not post to this account, it is a summing account)
>> cost
>> accumulated depreciation

View solution in original post

2 Comments 2
Rustler
Level 15

How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?

Yes it is a fixed asset, and the payment you made should post to that same account

yes you calculate and post annual depreciation to a fixed asset sub account for the car called accumulated depreciation-car

download IRS pub 946, depreciation it has the tables and % per year for depreciation.

journal entry to make the posting

debit depreciation expense
credit accumulated depreciation-car

I prefer to set up the FA account sturcture this way (all accounts are FA accounts

Car (do not post to this account, it is a summing account)
>> cost
>> accumulated depreciation

muhammadumair
Level 1

How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?

U r referring IRS but it's about accounting. Will i not be booking accounting depreciation in my quickbooks? If I am right so what will be the useful life as per GAAP for car and what will be the salvage value?

Get answers fast!
Log in and ask our experts your toughest QuickBooks questions today.

Need to get in touch?

Contact us