Recording purchase of a company vehicle

Subtract the rebate from the basis of the car because you did not pay the rebate (unless you want to record it as income!).

Basically you will debit the car for $31,038.26, credit cash for the $6,500 and credit the loan for the balance of $24,538.56. As you make the monthly payments you will debit the loan and credit your cash. You can do this on the check stub for the downpayment. Otherwise just journal entry the debit for the car basis and credit the loan for the same amount and code the downpayment against the loan. You end up in the same place either way.

So I don't need to make a journal entry? I am doing this all in the detail of the check?

Which do you think is clearer to do? Make a journal entry for the debit to the asset of 30797.63, debit to the licenses and fees of 240.63, credit the loan for 31038.26? Then in the body of the check, show the payment of 6500 against the loan? I have to go back and do this historically as it was done before we started using quickbooks and I am having to go back and enter the information in.

Also, how do I go about entering a credit card charge that was for additional items that were added to the truck after purchase that would increase the value of the truck if sold. The amount was for 823.20?

I'm not in full agreement with the previous response. As far as listing the vehicle as an asset item, I would give it the full value as an asset, This is what you are going to base your asset value and depreciation on, not necessarily what the final price was. The asset value is 33047.63. The fees are not part of the value, they are an expense. As far as entering the actual purchase transaction, down payment, and rebate, I would enter a journal entry detailing the purchase and adjustments to final cost and loan payable, (using a discount account for the rebate...that's what it is, not income). You are looking for your result to be the actual balance for your loan payable. Dr Asset-Vehicle Cost 33047.63, Dr-Auto Expense 240.63, Cr Cash-Downpymt 6500, Cr Discount-Rebate 2250, Cr Loan Payable 24538.26. Your loan payment will be a seperate transaction which you can memorize whereas it is the same each month and due the same time each month. Also, in checking your calculations there are 48 payments to make up the 24538.26. Hope this helps, and enjoy your ride!

You wil find LOAN MANAGER to be a great help in tracking the loan and properly computing the interest. It's under the BANKING tab. I usually use a JE to set it all up, and LOAN MANAGER will read you file. You just have to enter some information in LM when you set it up.