New to QB should we enter vehicle loans from remaining balances or from the original bal
We just switched, what's the best practices for vehicle loans. We have a few, should we be entering them as of balance 12/31/2021 or when we first purchased vehicle?
Also should they be entered in as a long-term liabilities and then enter the bills vs doing a journal entry ?
New to QB should we enter vehicle loans from remaining balances or from the original bal
Assuming you have your old records and old Bank Statements, I'd enter them with the Balance Due.
If you enter them with the original amount of the Loan, you'd then also have to show the payments to date, which will duplicate the payments. It would be a good question to run by your Tax Accountant too, just to confirm.
It's important to record the original cost, the depreciation taken to date, the current loan payable, and any equity. This will show your current basis in the asset so you can account for any gain or loss when you sell or dispose of the vehicle. Here is the journal entry for this:
Debit
Credit
Fixed Asset (vehicle)
XXX
Accumulated Depreciation
XXX
Loan payable (current balance)
XXX
Opening balance equity (to balance)
XXX
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