On June 25, Purkey Assemblers trades in a machine for a new one priced at $8,460, receiving a trade-in allowance of $1,500 on the old machine. Purkey makes a downpayment of $1,200 in cash and issues a 60-day, 9 percent note for the remainder. The subsidiary account shows the following:

cost (of old machine), $6,000; accumulated depreciation as of last December 31,

$4,800; monthly depreciation, $100. Without recognizing gain or loss, make entries in general journal form to record the depreciation of the old machine to date and to record the trade-in and purchase of the new machine.