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Geo10
May 7, 2024
Question

JOURNAL ENTRY FOR FIXED ASSET RETURNED TO DEALERSHIP WITH A LOAN LIA... Geo10 Updated May 07, 2024

  • May 7, 2024
  • 1 reply
  • 0 views

We returned (sold) a 2023 vehicle to to its dealership, but has a loan liability. Not sure how to enter journal entries.

Fixed asset = $30,801.24

Loan Liability = $20,582.396

Dealership offered = $13,000.00

I paid  extra = $6,807.62

Thank you for your help

 

 

1 reply

Rainflurry
Rainflurry
May 8, 2024

@Geo10 

 

Without knowing how much depreciation was taken on the vehicle up until the date of sale, the entry cannot be made.  Do you know how much depreciation was taken up to the date of sale?  You will need to fill in the blanks, but the journal entry will look like this:

 

 DebitCredit
Loan Payable (to close)20,582.39 
Accumulated Depreciation (up to date of sale)XXX 
     Fixed Asset (to close) 30,801.24
     Cash 6,807.62
     Gain/Loss on sale - to balance entry (debit if loss, credit if gain)XXXXXX
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