How to record "Ford Truck"?

[Shino]

Hi, I am a student who just started Peachtree complete accounting 2004, and I am practicing entering transactions right now. How do I record, "Purchase a truck for $26750.00. Down payment $4750.00"

Journal entry by manual done by,

Equipment 26750.00
Cash(down) 4750.00
Note payable 22000.00

How do I record this in Peachtree?

Thank you very much!

[Lisa_p]

When you make the payment, hit the asset for the truck value, and the liability with a negative amount. This will net to your cash outlay.

[Lorin Browning]

Shino,

I would have a General Journal entry as follows:

(1) Debit Truck (an asset account) for 26,750
(2) Credit Cash (an asset acount) for 4,750, and
(3) Credit Note Payable (a liability account for 22,000.

The above assumes there was no trade-in.

[Shino]

Thank you very much, I understand now.

[elucena]

OR......

To have a consistent record of disbursements always use "Payment command" to update disbursement journal.

From GL account hit the fixed asset account +26750
then hit your notes payable -22,000 ... with negative amount.


For your next full payment....

hit the notes payable account +22000 to close your payable account.