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Purchasing Assets
If your company purchases an asset, such as a vehicle or equipment, the method of entering it on the financial statement depends on how it was paid for. If it was paid with cash, make a journal entry to credit cash and debit the appropriate fixed asset account.
If it was paid by the company taking out a loan, you need to do the following. Make a journal entry to debit the fixed asset account and credit the Note Payable liability account for the amount of the asset. Set up the loan payments either as an invoice entered each month or as an accounts payable standard entry charged against the note payable liability account.
Also, you would need to set up a standard journal entry for depreciation.
We strongly recommend that you consult with your accountant or CPA for the preferred method of handling this transaction. Some transactions may have potential tax and/or legal ramifications that should be discussed with your advisors.