How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?

egonzalez · ‎October 19, 2018

Since the vehicle is already on the balance sheet as a fixed asset, should i depreciate its value? If so, according to what timeline? 60 months?

Rustler · ‎October 19, 2018

Yes it is a fixed asset, and the payment you made should post to that same account

yes you calculate and post annual depreciation to a fixed asset sub account for the car called accumulated depreciation-car

download IRS pub 946, depreciation it has the tables and % per year for depreciation.

journal entry to make the posting

debit depreciation expense
credit accumulated depreciation-car

I prefer to set up the FA account sturcture this way (all accounts are FA accounts

Car (do not post to this account, it is a summing account)
>> cost
>> accumulated depreciation

View solution in original post

Rustler · ‎October 19, 2018

Yes it is a fixed asset, and the payment you made should post to that same account

yes you calculate and post annual depreciation to a fixed asset sub account for the car called accumulated depreciation-car

download IRS pub 946, depreciation it has the tables and % per year for depreciation.

journal entry to make the posting

debit depreciation expense
credit accumulated depreciation-car

I prefer to set up the FA account sturcture this way (all accounts are FA accounts

Car (do not post to this account, it is a summing account)
>> cost
>> accumulated depreciation

muhammadumair · ‎August 06, 2024

U r referring IRS but it's about accounting. Will i not be booking accounting depreciation in my quickbooks? If I am right so what will be the useful life as per GAAP for car and what will be the salvage value?

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How do I record a vehicle that was purchased for the company but paid in full? Currently, I have it recorded on the balance sheet as a fixed asset? Is this correct?