Capital Asset Exchange

On April $1,$ a company was able exchange an old piece of equipment for a van listed at $$25,000.$ The equipment originally cost $$24,000$ and accumulated depreciation as of the date of exchange was $$6,000.$ The seller of the van was willing to give a trade$-$in allowance of $$20,000$ and accept the remainder in cash to complete the deal.

Prepare the journal entry to record the exchange of the equipment for the van assuming the fair value of the van is unreliable.

READ: The account names have not been indented on purpose. Select the account name to be included in the journal entry, choose whether that account is debited or credited, and finish by entering the amount. Debits still need to come before credits. There could be spaces for an account that are unnecessary meaning the journal entry needs only four accounts or three accounts. If an account blank is not needed, select $"$No Entry" for the Account Name blank$($s$),$ select $"$No Entry" for the Debit or Credit blank$($s$),$ and enter $"0"($a zero with no quotes$)$ in the Amount column. For example, if you only need three accounts in the journal entry, the last two Account Title blanks will have $"$No Entry" as an account name and $0$ in the Amounts column.