Best Construction completed the following transactions:

2018

February 01: Paid $10,000 cash for used equipment. Best Construction determined that the equipment would last 5 years and that it had no residual value.

February 08: Paid $3,000 to have the equipment's engine overhauled.

February 09: Paid $2,000 to have the equipment modified for specialized lifting of heavy items.

October 20: Paid $600 for an oil change and routine maintenance.

December 31: Used the straight-line method to record amortization on the equipment.

2019

March 14: Replaced the used equipment's broken handle for $700 cash. The new handle did not increase the useful life of the equipment.

August 01: Traded the used equipment for new equipment, which cost $20,000. Best Construction determined that the new equipment would last 10 years and that it had no residual value. The dealer gave a $4,000 allowance on the used equipment, and Best Construction paid cash for the balance. Best Construction recorded 2019 amortization on the used equipment and then recorded the equipment switch.

December 31: Used the straight-line method to record amortization on the new equipment.

Best Construction's amortization policy was to calculate amortization based on the days that it actually owned the equipment.

Required:

Journalize the above transactions in the general journal. Provide explanations. Round all calculations to the nearest dollar.