Have a car entered as fix asset. Started new with QB on January 1st. How do I enter the payments already made?

@davido

 

Well shoot, the issue is the loan is part of the car value as is the down payment.  

IF, if the car was bought before the Jan 1 start date ...

edit the starting entry for the car fixed asset and lower the value to 14,500

create a long term liability account named for the loan, zero balance
journal entry
debit car fixed asset, 11,500 and credit loan liability 11,500

You pay down the loan with the principal part of the monthly payment, and the interest portion is posted to interest expense from the checking account

The car fixed asset should also have a sub fixed asset account called accumulated depreciation car.  You did not mention any depreciation in your situation description but the car is subject to annual depreciation per IRS pub 946 if you are in the US.

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@davido wrote:
Entered the whole car value $ 26000 as fixed asset. Car was bought with  $ 3000 down payment. Car loan (with another bank) is already paid down to $ 11500. Our monthly payment is $ 300 princinipal, $ 40 interest.  Payments are made through our checking account. How do I enter all this correctly?

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If you entered the $ 26000 in the Balance box in the new item set-up screen, then the offset went to Opening Balance Equity, which is not the right account. It s/be a Loan Payable account. So create a Journal Entry: debit Opening Balance Equity, credit Loan Payable. 

For the $ 3000 down payment, allocate the expense for this to the Loan Payable.

 

"(with another bank) is already paid down to $ 11500"

this other bank needs to be in the books if it's a business bank account.  If it's a personal bank account, create another Journal Entry: debit Equity (assuming this is not a corporation), credit Loan Payable, for whatever the amount that has been paid.  If there is any interest paid in this, reduce the credit to Loan Payable by it and debit interest expense.

 

"Our monthly payment is $ 300 princinipal, $ 40 interest. "

split the payment; $40 to interest expense, $ 300 to principal

 

 

Sorry, here is more information:

purchased in Jan 2016.

we are sole proprietor in US.

We use it mostly for business . 

 

How did you come up with the $ 14 500?

 

In our previous paperwork from bookkeeping there is a depreciation entry

 

I don't know if the information above changes anything from your previous advise?

Hello Rustler, I need help with a similar situation. I am starting a new QB company started 01/01/19, with vehicles I need to add (the payments are coming through the bank account transactions but I have no vehicle accounts of any type set up yet). The first one is a box truck purchased 10/09/2017 for $11,401.95 including tax, $1,000 down payment, and monthly payments of $380.00 but I do not have a break down of how much of the payments are interest. The paperwork just says that the finance charges overall total $3143.57 over 35 payments of $380.00 and 1 final payment of $245.52. Not sure if this is waaaaay more info that you or I need to set this up in quickbooks, but I need a step by step break down in beginner language if possible or maybe you can point me to where I can find that kind of instruction? The other two vehicles will be similar but with different numbers obviously; I am hoping the same steps are repeated to add those? Sorry in advance for my painful newbiness and thanks for any help you can provide. ;0)