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muffins
Sep 27, 2011, 06:59 PM
How post entries for purchase of a truck that cost $27,266.32? (This amt includes 3,500 rebate and a downpayment of $2,000)

Truck purchased in 4/2010 @ 5.99% APR w/finance charges of 3,565.04 over a period of 72 months:

Amount being financed is 18,201.28

How post for year ending 2010?

muffins
Sep 28, 2011, 04:55 PM
How book a vehicle w/cash down and finance charges - what is the cost that is entered as the fixed asset and depreciated?

pready
Sep 28, 2011, 05:10 PM
Debit Vehicle for the total cost
Credit Cash for the amount paid
Credit Notes Payable for the difference.

For depreciation it depends on what method you are using and the useful life of the asset.

muffins
Sep 28, 2011, 06:02 PM
Hi Pready -answered my question partially - the S/L is for 5 years. Also, is the f/chrg included in the total vehicle cost? How is the f/chrg booked?