Recording New Vehicle purchase with trade in of fully paid vehicle

@Dicey545 

To record this properly, there are a couple of pieces of information that are still needed:

1) The original purchase price of the trade-in vehicle.

2) How much depreciation was taken on the trade-in vehicle?

We need to know the original purchase price of the trade-in to remove it from your balance sheet, and we also need to know the amount of depreciation taken to determine if there was a gain or loss on the trade-in from a tax perspective. 

Until we know those pieces of information, you can't make a complete entry.  To enter this, you will create a journal entry (Company > Make General Journal Entries) like this:

The taxes and fees are added to the truck's cost and capitalized as an asset (96,453.99 + 2,374.10 = 98,828.09).  

Debits need to equal credits on a journal entry and the Gain/Loss (other income) is the balancing debit or credit.  You will need to set up a 'Gain/Loss on Asset Disposal' other income account.  Hope this helps. 

If you can't determine the accumulated depreciation taken, you can make the following journal entry and let the business's CPA/tax accountant finish the entry: