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hi my name is Sophia gabay bringing you another QuickBooks Online tutorial and today I wanted to go over how to add an asset to your company's balance sheet so I have a brand new quickbooks company file open and the first thing we're gonna want to do is go into our chart of accounts you do that by cleaning by clicking the gear icon and then clicking chart of accounts under the settings section and we're gonna want to create a new account you do that by clicking the new button and for this example we're going to assume that we're buying a truck so that's going to be categorized as a fixed asset and then we're gonna put it under vehicles for detail type and we're just gonna call it truck if you have multiple trucks they're gonna want to differentiate the different types of trucks so you could add like truck number one truck two or the make and model if you weren't okay and let's just save this and also another thing is if you have if you're gonna be buying multiple trucks or multiple properties this is a real estate holding company you could create a sub-account and then half trucks on their vehicles or something like that but for now let's just go with this we'll save it okay there we go you see trucks as if as a fixed asset on our chart of accounts that's now we're good to go another thing we're gonna another account that we're gonna have to add is depending on how we're paying for this truck we're gonna have to add either like an equity account for a capital contribution if we're paying for this out of if the shareholders are buying this is uh if the business owner is buying this with its truck or some kind of loan payable liability account if we're getting a loan to to pay for this truck or both of them it's going to be a mix so let me just go through and do one of each so let's let's create an owner's equity account and we'll create a loan account it's going to be a long-term liability a long-term it's more than one year anything that's current means that it's going to be paid within one year so oh no it's payable that's fine okay so we created three accounts one for the truck one for a loan and one for owner's equity now the next step would be to record the purchase of the truck let me just open up a balance sheet really quickly so that I could show you what's happening behind the scenes as you see there's nothing on our balance sheet right now I just want to record a a deposit so that we have at least some cash and on our books and we don't we don't have a bank account yet because this is a brand-new file so I'm just going to create a generic bank account called checking okay awesome so we're just going to assume that we started this bank account with fifteen fifty thousand dollars from as a kata capital contribution from the owners so $50,000 saving close let's refresh our balance sheet let's run this balance sheet for year-to-date okay there we go so now we have $50,000 in the checking account and $50,000 in owner's equity perfect I want to duplicate this tab so that it we can have the balance sheet easily accessible okay now we're ready to buy our truck so we're going to go into we're going to assume that we're writing a check to buy this truck and we're purchasing it from our checking account so we got to write check we choose to pay we don't have any payee so we're just gonna create one ABC truck sales there you go okay and we're gonna use an account for this and the account as you probably already can guess it's going to be our truck account and we're going to assume that we're buying the truck for $15,000 everything looks good the dates fine favorite clothes okay so now if you look at our balance sheet we refresh this you'll see that the $15,000 was taken out of our checking account and we have now a truck on our balance sheet for the amount of $15,000 now let's go through another example where we're not buying the truck for for cash we're not paying for it completely we're gonna take out a loan so basically we're gonna put a down payment on the truck and then we're gonna finance the rest of it so let me just go back to that check so this was the original purchase I want to delete this and because we're we're gonna create a new transaction where we're assuming that we're doing the down payment method and we're financing it so if we go back to our balance sheet you'll see that we we still have fifty thousand dollars now and fifty thousand and owner's equity so we didn't we didn't buy a truck yet okay we're doing this all over and that was financing it so same same thing we'll go to check we're buying it from the same vendor and then we're gonna buy the truck the amount it's gonna be 15,000 okay but we're gonna finance it this time so we're financing let's say we're gonna finance 12,000 and we're paying $3,000 as a down payment so this is how you're gonna set this up we're gonna set it up as a check because we're cutting a check to truck sales ABC truck sales for $3,000 and then we're gonna finance the rest of it so you enter the the full amount that you're paying for the truck including the financing so $15,000 is a cost and then underneath that we have our notes payable this is gonna be our financing amount so we're assuming that we're financing 80% so that 80% is $12,000 so you enter that in as a negative number that's very important that you remember that youth so once you do that you'll see that the net amount the total leftover is gonna be the $3,000 which is our down payment amount that we're paying ABC truck sales and this is we're paying it out of our checking account so that's that good so you just that's how you recorded let's save and close and then let's go back to our balance sheet and then you guys could pause this video right now just to kind of well I already I've already pulled it up but I wanted you to pause the video to see if you could figure out the accounting that's gonna happen behind the scenes before you see it but as you as you can see now we had the $3,000 pulled out of the checking account for the deposit that on the for the down payment on the truck we have our full value of the truck that 15,000 on the books and now we have notes payable liability on the books for 12,000 dollars that's the financing on the truck so that's how you record it the next step would be to record payments and we could also you know do some depreciation on the truck after a period of time I know I'll really set it I'll show you how to do that in the next video so if you found this video useful or helpful you know please like the video let me know and if you have any questions please feel free to leave them in the comments below and subscribe to my channel to see more videos like this in the future thank you for watching and have a nice day