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    muffins's Avatar
    muffins Posts: 3, Reputation: 1
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    #1

    Sep 27, 2011, 06:59 PM
    Vehicle Accounting
    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's Avatar
    muffins Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Sep 28, 2011, 04:55 PM
    Vehicle Purchase w/finance charges
    How book a vehicle w/cash down and finance charges - what is the cost that is entered as the fixed asset and depreciated?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #3

    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's Avatar
    muffins Posts: 3, Reputation: 1
    New Member
    		  
    #4

    Sep 28, 2011, 06:02 PM
    Vehicle Purchase Booking
    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?
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