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S
social209
June 30, 2020
Solved

Equipment Lease

  • June 30, 2020
  • 1 reply
  • 4 views

Company Leased its equipment from 2 banks and paid cash for the remainder. Total for equipment would be example 150k, one bank took on loan for 110,000, bank two took on loan for 20k and business paid 20k cash. How would i report this since the money came from 3 different sources?

 

Equipment is the asset, but how would the others be entered?

Best answer by john-pero

Leased equipment is generally an ordinary expense for lease payments. This may or may not include the capital reduction via cash. You can record the loan liabilities against the asset and maybe the 20k as well but by doing so the 20k must be depreciated over time while the regular payments in full afainst the loan value is straight lease expense

1 reply

john-pero
john-peroAnswer
Level 12
July 1, 2020

Leased equipment is generally an ordinary expense for lease payments. This may or may not include the capital reduction via cash. You can record the loan liabilities against the asset and maybe the 20k as well but by doing so the 20k must be depreciated over time while the regular payments in full afainst the loan value is straight lease expense

E
ESII
March 5, 2021

I am looking for a video or instructions on how to set up my leased equipment in Quickbooks.  i.e., do I set up the payments as a loan?  or is there something else I should do?  Do I include the equipment as an asset or wait until I complete the lease and purchase it outright?

 

 

Rubielyn_J
Rubielyn_J
Level 8
March 5, 2021

I'm here to make sure you're able to set up leased equipment in QuickBooks Desktop, @ESII.

 

To begin, ensure to create a leased expense account to track the paid amount. 

 

Here's how:

  1. Go to the Lists menu, then choose Chart of Accounts.
  2. From the Account ▼dropdown, click New.
  3. Select an account type, then select Continue.
  4. Complete the account details.
  5. Once done, click Save & Close.

 

Then create vendor and bills for the leased equipment. This is used to track the payable.

 

Here's how: 

  1. Open your company file.
  2. Go to the Vendors menu and click Vendor Center. 
  3. At the top portion, select New Vendor.
  4. Enter the necessary information and click OK.

 

Then, create bills: 

  1. Go to Vendor, and select Vendor Center.
  2. Choose the vendor.
  3. Click the Manage Transactions dropdown and choose Bills.
  4. Select the account and enter the amount. 
  5. Once done, click Save and Close.

 

Lastly, if you decide to buy the equipment, you can enter the equipment as a purchased asset.

 

I've also added these articles to help you manage vendor transactions in QuickBooks Desktop:

 

Feel free to comment down below if you have other concerns with QuickBooks. I'll keep an eye on your response. Have a nice day ahead.

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