You should expense the equipment out as an asset and the other side of the JE will be the liability account (creating the beginig balance). The journal entry to record the purchase is shown here.The Fixed Asset Confirmation Tool is available in the same application as the Journal Entry Workflow 3.0 application. I am going to show you two ways to record the purchase of a financed asset which is an asset that you get a loan on. The only difference between merchandise purchased for cash and merchandise purchased on account is the accounts involved in the transaction. Recognize that a business can borrow to purchase assets using an installment loan. The tradein value will not be part of the final journal entry but needs to be entered as a credit to balance the entry based on the limited info you provided. THIS ASSET PURCHASE AGREEMENT (this "Agreement"), dated as of September.