insurance car loan

[Ethy H. Brito]

Hi all

I am still confused about this double entry thing (Duuhh!).

Here is the deal: my insurance company divides my car insurance ($1000) in 10
payments ($101). 

How do I account the initial amount hired? What are the two accounts involved?

Must I account it initially as a expense or a liability? Decrease (1st) or
Increase (2nd) column? (I did it as liability/Increase expense/decrease columns
but I am not convinced it is right!)

What about the monthly payments? How will they reduce the grand total I owe to
the insurance company?

Regards

-- 

Ethy H. Brito         /"\
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