Accounting in the equipment trade-in should be how to do the accounts ah

To do two separately, a sale of old equipment, a purchase of new equipment .

When selling the old equipment: for example, the original value of fixed assets 700, depreciation 500.

Borrow: fixed assets cleanup 200

Borrow: Accumulated depreciation 500

Credit: Fixed Assets 700

2. For example, the new equipment is 600

Borrow: Accounts Receivable - the other company 200 + tax

Credit: Fixed Assets Liquidation 200

Credit: Taxes Payable (this is omitted)

Borrow: Construction in Progress 600

Credit: Accounts Receivable - the other company 600

4. After installation

Borrow: Fixed Assets 600+Installation Fee etc.

Credit: Construction in Progress 600+installation fee, etc.