Ok so I’m trying to record a car purchase but I’m a bit unsure and could use a second opinion to make sure I do this right. Scenario:
Purchase Price: $27,500.00
Down Payment: $2,750.00
Stamp Duty $45.00
Finance Fee $350.00
Dealer Fee $750.00
Loan Amount $25,895.00
Contract Rate (APR): 4.78%
Monthly Payment Amount: 48 x $565.28
Total of Payments: $27,133.44
Total Purchase Cost: $29,883.44
So I’ve read the guides and googled a bit then created a fixed asset for the car, a liability account for the loan and an asset account for the loan interest. Next I created a journal entry with the following lines:
Have I set this up correctly?
Thanks in advance! Oh and super program by the way!