How To: Vehicle/Equipment Purchases and Sales
For most companies, buying and selling Equipment is a frequent occurrence. Below are a few scenarios to assist you throughout the process. Purchasing a new vehicle/equipment with a trade-in while also financing (This scenario will be finalized as a Journal Entry.) The value of the trade-in is $5,000, remaining loan balance is $2,500, depreciated amount is $18,000, cost of new vehicle $47,500, and total financed including trade is $45,000. Note: After you cut an (AP) check to
