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Level 2

Traded My Personal Vehicle For a Company Vehicle

I traded in my Tundra (yes there were tears involved) for a Promaster van to use as a mobile gallery and moving billboard for my cuckoo clock business. And took a small loan.

Reading here I see how to setup the new fixed asset for the van. And a long term liability for the new loan. And that I need an accumulated depreciation account as well. 

But since the Tundra wasn't owned by the business, how do I account for using it as a down payment? Seems to me it could be owner's equity or a loan?

3 Comments
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Community Champion

Traded My Personal Vehicle For a Company Vehicle

Trade in value is contributed owner equity. 

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Level 2

Traded My Personal Vehicle For a Company Vehicle

Thanks!

How do I enter that? I have set up a fixed asset account for the van with the purchase price. And set up a Long Term Liability account for the van loan. (When I connect the bank account to it will it download the opening balance, etc.?)

How do I make the entry for the owner's equity? It must get connected to the loan somehow for it to balance out, right?

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QuickBooks Team

Traded My Personal Vehicle For a Company Vehicle

Good Afternoon, @Jodie

 

I'm here to lend a hand by helping you get to the bottom of these accounts and how opening balances work within your QuickBooks Online account. The feature to enter an Opening Balance will occur when you connect your account. It will give you one of two options: To bring over data from a certain start date of your desire or select a start date and the amount of the Opening Balance. Below is a visual that can help you out. 

 

 

To answer your second question about how to do the entry for the owner's equity, I suggest using a journal entry. However, before doing so, I recommend consulting with your accountant on this matter to ensure that you're getting the best accounting advice for your unique business. 

 

Should you have any further questions, don't hesitate to ask. I value you and the success of your business. Have a splendid day! 

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