[sherick]

How do I record a journal entry for purchase of a business (sole proprietorship) when they purchased for $100K Note Payable. $90K was for Goodwill/Non-Compete, and $10K was for computer equipment. Do I debit Assets (Equipment) for $10K and Intangible Assets (Goodwill) for $90K and CR Note Payable for $100K? Where is the equity recorded for this purchase if there is any? Also, each time a payment is made on the Note Payable, do I DB Cash and CR Note Payable? Again, where is the Owner's equity recorded for this? He has to be accumulating some equity as payments are made, right? Thanks!