Can anyone advise what the steps are for processing the purchase of a vehicle, and related finance/insurance charges over five years with the ensuing reduction of liability to expense, when regular payments are made, through a small set of accounts?
Capital Asset Auto price Loan Account price Purchase of auto, entered once
Loan Account payment of principal Interest expense payment of interest A/P total payment Recognition of bill, entered for each bill
A/P total payment cash total payment Payment of bill, entered for each payment
Depreciation 1/60 of price if straight line Accumulated Depreciation Auto 1/60 of price if straight line To depreciate value, entered monthly
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