A Purchase of Equipment Journal Entry is a type of ledger entry accounting for the purchase of any tangible asset that will benefit the company in the long-term. This entry records the full cost of the equipment, including initial payment as well as taxes and other associated costs. Furthermore, this journal entry must also encompass the amortization of the purchased asset over its useful lifespan. This process ensures that all expenses related to the purchase and maintenance of new equipment are accurately accounted for on the company’s balance sheet.