Purchase of New Asset

Question

I am purchasing a new asset and plan to pay cash for it, no loan.  I have set up a new asset account.  How do I record the payment for the new machine? What category should I select for the payment to make it show up in the asset account?

thumpersmom · Answer

Thank you!! That worked perfectly.

UKR · Answer

In that case, record the purchase in the credit card account like any other purchase, except categorize it as a transfer to the new asset account. This will make a transaction appear in the Asset account register.
When due, pay the credit card balance as you usually do, as a transfer from the Checking account.

thumpersmom · Answer

I use a checking account to pay for everything (including payments for my credit card).  I plan to buy the machine on the credit card.  I can record the payment on the credit card as "cash" and pay the card from my checking account but if I make a transfer from the checking account to the asset account my checking account balance will not equal the bank any more.