How do I record - Vehicle Purchase + Bank Loan + Interest

JNL

Hi all

Newbie here with little account knowledge. I wanted to record a purchase of new vehicle and wanted to know how should I record this hypothetical scenario below

Purchase of vehicle $100,000
Bank Loan - $50,000
Bank Interest - $10,000
Loan term - 60 months
Repayment - $1000 monthly

Based on this post, I think i worked out

1. Create an asset in Accounting > Chart of Accounts > Assets > Property, Plant, Equipment
2. Create a new loan account under Accounting > Chart of Accounts > Liabilities & Credit Cards > Loan and Line of Credit called "Vehicle Loan"

How do we account for Interests mentioned above? what do I do for monthly bank loan deduction of $1000 (principal and interest).

Thanks!

Mikeg

@JNL,
You have started off correct. Except, I would create the liability under Long Term and not the credit card. The reasoning is that the credit card, loan section of Wave is meant for accounts that you can connect. You will have more flexibility if you use Long Term Liability for the Car Loan. One point is that your entry is missing the other 50k.
Debit - Car (asset) 100,000
Credit Car Loan (liability) 50000
Credit ? - 50000 (where did the other 50000 come from)
Next step is to create an amortization schedule for the loan. Templates are available in excel or do a google search. Once you have the breakdown of interest and principal by payment, you can split the loan payment in the transaction journal between Interest Expense the Car Loan. The balance in the loan account should match up to the principal balance on amortization schedule.