Journal Entry for purhcase of new vehicle with a trade in and loan.

@david088 

Your post is a bit confusing because there are two values for the old loan ($59,374.07 & $57,567.92) and a portion of the new loan was removed from your post for some reason ($49,XXX.07). 

Also, if you received $51K on the trade and they paid off your loan of $59K or $57K, you should owe them $6K or $8K.  That should have been rolled into the new loan or, if not, made up the difference in cash.  It doesn't appear that either of those happened. 

Here is the journal entry with the info provided.  I used the old loan value of $57,567.92.  You can adjust that up and decrease the gain if the loan payoff was $59,374.07.  You will need to add the proper amount for the new loan since that was incomplete in your post.  Again, offset the difference to gain.  Debits and credits need to be equal.

@david088 

EDIT:  If you increase the old loan payoff amount, you will need to increase the gain, not decrease it as I previously stated.  

Thank you! I don't know why it was removed.

new loan is 57,567.92. 

Old loan is 59,374.07

the blurred-out part was the new loan plus the remainder to pay of the old loan which was included in the new one per the contract. 

Thank you once again for your time and help!

Hi, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Stay safe and have a great rest of the day.

What about a purchase without a loan (cash) with a trade in. New 2023 vehicle purchase $76,580.70 HST $11,485.13, trade in allowance $13,800.00. The original purchase price for the trade in 2016 vehicle is $43,925.50 + HST $6588.83. What would be the journal entry?