Last year, we purchased some equipment from another company on a personal note of 24,000. We paid half last year and will finish it this year. When we did it, I entered it as a long-term liability of 24,000 and classified each payment toward that liability. However, as I am working my taxes, I realized that it didn't expense out the payment. It shows the remaining balance correctly, but we are showing a significant profit without those loan payments. What do I need to do to claim the expense of the equipment? (I have really only used Quickbooks for basic deposits/expenses up until now, so I feel like I may be floundering a little. I think an accountant is in our future as our business grows!) I appreciate your help!
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