I'm trying to figure out how I should enter a Journal Entry for the trade-in and purchase of our business vehicle. This is what I have.
Old Truck
Payoff Balance Amount: $19,845.46
Old Truck Trade-in Value: $14,500
Down payment (Personal Funds): $5000
Negative Equity: $345.46
New Truck Price: $34,797.18 + Negative Equity $345.46 = $35,142.64 (NEW LOAN AMOUNT)
Information in Quickbooks (Old Truck)
Fixed Asset in Quickbooks: $20,610.71
Depreciation in Quickbooks: $1031.00
Fixed Asset Balance in Quickbooks: $19,579.71
Original Loan: $20,610.71
Payments: $909.80
Loan Balance: $19,701.91
Not sure how I should enter this journal entry. Please help!