3/19/2024 0 Comments Auto dealer cogs accounts![]() We would also make entries to start taking depreciation on the new van. Debit: Accumulated Depreciation – $10,000.00. ![]() Let’s assume the net book value remaining for the old van at the time of the trade in was $10,000.00 and you received $8,000.00 for the van. The answer is that, in addition to the accounting entries above, we would need to remove the old van from your balance sheet and recognize any gain or loss from the sale of the old van. Example of a Trade-In Vehicleīut what if you did not pay cash for the van? What if you paid part cash and traded in an existing van that is included as an asset on your books? If the balance sheet is ran at the end of the year, it would reflect a $50,000.00 asset less $10,000.00 of accumulated depreciation. ![]()
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