Hello,

1.  Create a Vendor for the telephone bill, eg. Rogers Cellphone.

2.  Create a Telephone Expense and Telephone Payment Expense accounts.  If you need a breakdown to include interest on the phone payment plan, create Phone Interest Expense also.

3.  Rogers Cellphone phone bill arrives for $125.00, eg. journal entry below using Rogers Cellphone.

Phone service portion - debit Telephone Expense $100

Phone payment - debit Telephone Purchase Expense $20

Phone payment interest, if needed - debit Telephone Purchase Interest Expense $5

Pay total Rogers Cellphone bill - Credit $125 to Bank

This is the easiest, most straight forward method by expensing at time of charge each month.  When they stop charging you for the phone, you will stop expensing it.  You can also keep track of how much you have paid.

Hope this helps,

Linda