On January 2, 2011, Joshon Hardware Company traded with a dealer an old delivery truck for a newer model. Data relative to the old and new trucks follow:

Old truck:

Original cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,750

Accumulated depreciation as of January 2, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000

New truck:

List price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000

Cash price without trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,100

Cash paid with trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,900

1. Give the journal entries on Joshon’s books to record the purchase of the new truck.

2. Give the journal entries on Joshon’s books if the cash paid was $18,000 and that amount is considered “large.”