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How do I enter into Quickbooks a new 100% business vehicle loan with balance owed pm trade in previous personal/ business use vehicle?
I purchased a new vehicle which will be 100% business use only. We owed more on the trade in vehicle than what it was worth. The previous vehicle was used for personal and business.
For easy math.
Trade in Vehicle Owed:$4,000
Please advise: Account Set Up and Entries.
Thank you in advance.
Assuming your company is NOT taxed as a c- or s-corporation
create a fixed asset account named for the new car
journal entry for the trade in
debit fixed asset car 4K, credit owner equity investment
the remaining 46K, you do not say if you paid cash in full, took a loan out, some combination of both?