Journal Entries for trading one financed vehicle for another

@Skookysnacks 

You will need to depreciate the old vehicle through the day it was traded.  Then, there are a couple of pieces of missing info:

1) What was the purchase price of the old vehicle?

2) How much accumulated depreciation have you taken on the old vehicle? 

When you have those, the journal entry will look like this:

Thankyou. I have the original purchase price of old vehicle $105547.01 but I don’t know the depreciation as the accountant has been lumping all vehicle depreciation together at year end. Is there an entry I can do now and then they record the depreciation later? At year end? 

Thankyou I have the original purchase price but don’t know the depreciation of the specific vehicle as accountant lumps all vehicle depreciation together. Is there an entry I can do where they can deal with the depreciation at year end? 

Thanks for getting in touch with the Community, Skookysnacks. I appreciate your detailed information.

To properly identify if you should do an entry now and record your depreciation at year end, I'd recommend working with an accounting professional. It's also recommended to work with an accountant if you're unsure of what to do with an journal entry.

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

Once you've found an accountant, they can be contacted through their Send a message form.

I've also included a detailed resource about working with journal entries which may come in handy moving forward: Create journal entries

Please feel welcome to send a reply if there's any questions. Have a great Wednesday!

@Skookysnacks 

Is there an entry I can do where they can deal with the depreciation at year end?

I just realized the journal entry on my previous post had the new vehicle fixed asset entered twice instead of the filing fee.  Sorry about that.    

At this point, I would make the journal entry below and let your accountant add the debit entry for accumulated depreciation, balancing it with the gain/loss.  This will close out the old loan, enter the new loan, remove the old vehicle, and enter the new vehicle.  Hope this helps.