What is the journal entry to record purchase of an asset that was financed and the subsequent removal of an asset that was traded in to acquire such asset? The problem I am having is the trade in value was 119,680 and payoff was only 98,800 showing a gain of 20,880. The Liablity for the trade in is 103,262.40. New asset purchase was 162,500.00. Traded in asset was 154,700 with Acc Depr of124142.00, What is my entry?
Dr. Note Payable 103,262.40
Cr. Deferred Finance Charges 4,462.40
Dr. Acc. Depr Trade 124142.00
Cr. Old Asset 154700.00
Dr. New Asset 162500.00
Cr. Note Payble New Asset 134098.00

I am stuck, Please Help!

I'm thoroughly confused over this information. I'm not sure what was given in the problem, and which are your calculations. I don't know where some of these numbers are coming from because they don't make sense. I don't know what is happening with the loan. (i.e. are they rolling the old loan into a new one? Cause if so, I don't know where you got your numbers.) The information is confusing and I don't have a clue what is going on here.

You need to quote the problem *exactly* as it is written, with ALL information. Then separately you need to say what your own calculations are.