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Join nowWe have purchased a business and part of the purchase agreement is that we purchased $50,000 worth of equipment from the previous owners via a loan with quarterly payments. I am running into an issue in getting the transaction to show correctly under the fixed assets. Here is what I had done so far:
1) Added a Long Term Liability account in the Chart of Accounts for the Loan
2) Entered all of the loan payments in bill pay with the principal portion of the loan payments being applied against the Long Term Liability Account and set up as a AP.
3) Set up the Interest Portion of the Payment to be expensed as Interest Expense
The problem I am running into is since this is the purchase of a fixed asset, I am not seeing how I can Debit the Fixed Asset accounts now that the Bill Payments have been set. Please see screenshots attached
I'm glad you made your way here, taftsquare.
I appreciate the detailed information about your concern and I'm here to help debit the fixed asset accounts in QuickBooks Online (QBO).
You can create a Journal Entry (JE) to record the Asset. Before doing so, I suggest consulting an accounting professional to provide more expert advice on how to handle this situation.
Here's how to create JE:
For additional information on this, I recommend checking the following article about creating Journal Entry: Create a journal entry in QuickBooks Online
In case you want to review the entries made, you can pull up or print a report for Journal Entries.
To do that:
Of course, you're always welcome to visit us again if you need help. It will be my pleasure. Stay safe and have a great day ahead!
Hi, taftsquare.
Hope you’re doing great. I wanted to see how everything is going about purchasing fixed assets with a loan. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.
Looking forward to your reply. Have a pleasant day ahead!
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