How to use Lease Buyout account

So your lease buyout is called a capital lease in accounting.

So the lease is considered a liability and the item is a fixed asset subject to annual depreciation (if it qualifies in IRS Pub 946)

Create the fixed asset account and the liability account, do a journal entry,
debit the fixed asset account for the total of the lease (125 * 36 + 1)
credit the liability account

then you pay down the liability account

hello, what if you use the notes payable options to record the capital lease, and track the payments there and use the other asset chart of accounts to account for the capital lease total amount?