accounting for a vehicle lease agreement
My boss is paying for one of his employees lease on a vehicle. I do not believe this would be considered a "capitalized lease" as it's not mainly used for business purposes. She uses it just as if she were purchasing it for personal use. My question is how do I record an initial entry for this on the debit side if I am treating it in QuickBooks as a long term liability that we are paying down? I know that my original entry to begin with was incorrect as the debit side went to an equity account of "Opening Balance Equity". My confusion is this - since it will not actually end up as a "purchased" vehicle, what should have been the debit entry to record this?