What category does a credit card loan go to when the debit is for equipment for your business?

Question

I bought an equipment using a credit card and is currently paying it off. Where will my credit card fall under -a cost of goods, expense account or loan? Wouldn’t that make the  credit card as the vendor?

Answer

I am assuming that you are using an accounting software package. You will need to create a new account for that card and set the credit card company as vendor. Charges to the credit card should originally be recorded either to an expense account or a capital account. When you start paying off the card, you may book everything  to the credit card account  except for the interest expense.

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