In Canada, how do you account for the purchase of a vehicle which includes GST, PST, PPSA filing fees, and interest over 36 month term @ 1.99% ($1,842.74)
Vehicle cost: $62,212.00, GST $2,712.72, PST $4,524.43, PPSA fees $37.35 and of course the interest of $1,842.74. Owner also made a 10,000 down payment and the balance to be paid in 35 equal intallments is $61,329.74.
I need an answer by Dec 23rd for year-end so would appreciate any help anyone can give me.
My attempt:
Vehicle $69486.50
Interest 1,842.74 dr
Down pay -10,000.00 dr
Total $61,329.74
Truck Loan $52,212.00 cr
PST 4,524.43 cr
GST 2,712.72 cr
PPSA Feew

To account for the purchase of a vehicle you need to figure out the cost of the vehicle. The cost includes the purchase price plus the fees and taxes incurred in the purchase of the vehicle.

Interest has nothing to do with the purchase price of the vehicle. It only comes into play when you are making payments or the accrual of the payments.

The journal entry to record the vehicle will be:
Debit the vehicle account for the Purchase Price.
Credit Cash for the down Payment paid
Credit Notes Payable for the Difference between the purchase price and the down payment.