How to record a bank loan to purchase a business

@DCSBDA 

You will need to set up the following accounts:

Account Name - Type of Account

1) Goodwill - Fixed Asset

2) Accumulated Amortization - Fixed Asset

3) Equipment - Fixed Asset

4) Equipment - Accumulated Depreciation - Fixed Asset

5) Truck - Fixed Asset

6) Accumulated Depreciation - Truck - Fixed Asset

7) Amortization - Expense

8) Depreciation Expense - Expense

9) Loan Payable - Long Term Liability

Then, to record the purchase of the business, you can write a check for $30,000.  Under 'Category details' enter the following categories and amounts:

Goodwill -$50,000

Equipment -$30,000

Truck -$20,000

Loan Payable +$70,000

Conversely, you can create a journal entry to record the purchase:

If the cash came from personal funds, replace the cash credit of $30K with an owner's equity account.

All of the other accounts (Amortization, Accumulated Depreciation, etc) will be used in the future but it's a good idea to set them up now.

@DCSBDA 

I forgot to mention that when you record the loan payment, you will write a check and assign the principal portion to the loan payable liability account and the interest portion to the interest expense account.  The interest expense account is usually a default account in QBO.  If you don't see it, set up an 'Other Expense' account called Interest Expense.