USA Posting trade in of asset and clearing loan

[Clueless]

Help...I'm so lost. I'm self taught on most of this and do okay until it comes to the balance sheets with loans and assets and disposing of.

First off I'm using Quickbooks and client has still not given me their docs from purchasing a new vehicle.

All I know is:
Purchased Mercedes for $100,000
She paid 30,000 down cash (Owner's Equity)
They allowed $30,000 for the trade in of a Toyota (Deducted $30k from the Toyoya asset account when added to the Mercedes asset account)
Which leaves a balance of $40,000 which is the loan she received.
So all three together equal the $100,000 that is in the Mercedes asset account. When adding the $40k I also created the liability account for the loan.

Ok no problem THAT was easy.

Its the $7,000 left in the Toyota asset account and the $26,000 left on the Toyota loan I don't know what to do with. Do I $0 them out and put the it difference to Owner's??

Please help!

 

[Triest123]

Help...I'm so lost. I'm self taught


Its the $7,000 left in the Toyota asset account and the $26,000 left on the Toyota loan
I don't know what to do with. Do I $0 them out and put the it difference to Owner's??

Please help!

=> The $7,000 is the loss on disposal of the Toyota

You should clarify with the "Finance company" whether Toyota loan still exists or had already be repaid upon trade in the toyota.

Whether the Toyota loan is settled by the company or by the Owner himself?