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Original Loan Amt of $10,000.
Sold to dealer for $8000.
Paid loss of $2000 with new vehicle loan.
New car purchase of $20,000
Total new car loan of $22,000.
The vehicle should have been carried as a fixed asset, something like thisfixed assets:car model>> car cost>> accum. depreciation car
1. calculate and post partial year depreciation on the car2. create create a new car fixed asset car structure like the above3. journal entries
debit accum. depreciation car for the balance in the account, credit new car cost accountdebit new car cost account, credit car cost fixed asset account for the balance in the account
debit old loan 10Kdebit new car cost 12Kcredit new loan 22K