During 2014, Gattis Company completed the following transactions:

Jan. 1 Traded in old office equipment with book value of $ 60,000 (cost of $ 140,000 and accumulated depreciation of $ 80,000) for new equipment. Gattis also paid $ 70,000 in cash. Fair value of new equipment is $ 135,000. Assume the exchange had commercial substance.

Apr. 1 Sold equipment that cost $ 40,000 (accumulated depreciation of $ 35,000 through December 31 of the preceding year). Gattis received $ 3,000 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $ 0.

Dec. 31 Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $ 4,000 residual value.

Record the transactions in the journal of Gattis Company.