Exercise #2:Journalize the following transactions for the Round Company for 201X and show all calculations:

• Jan. 1Sold a truck for $1,300 that cost $6,700 and had accumulated depreciation of $6,000.
• Feb 10A machine costing $3,100 with accumulated depreciation of $2,150 was destroyed in a fire. The insurance company settled the claim for $450.
• May 1Traded in a machine costing $18,000 with $14,500 of accumulated depreciation for a new machine costing $25,100 with a trade-in allowance of $3,000. Note that depreciation is up-to-date. The loss is to be recognized.
• July 8Traded in a machine costing $46,000 with $34,000 of accumulated depreciation (which is up-to-date) for a new machine for a cash price of $47,000 and a trade-in allowance of $15,000.
• Aug. 9Journalize the May 1 transaction using the income tax method.
• Sept. 12A truck costing $7,500 and fully depreciated was disposed of.