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Status Answered
Created by AgExpert Support
Created on Apr 24, 2020

Disqus Agexpert Accounting Questions Archive

Hi, we just recently took out a loan to consolidate a previous loan and pay out 2 equipment leases. I have figured out how to add the new loan. L- the old loan but had always entered the equipment leases as expenses to JD So how do i show these paid out?
thanks!

  • ADMIN RESPONSE
    Feb 10, 2025

    Hi Elsa, If you'd always entered those payments as EX then there's no associated Capital Asset or overall liability. So to balance out the new L+ and show the leases as bought out, you'll simply need to do a C+ line or lines to show that equipments now as capital assets.

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