1. In 2020, Staged Home Ltd. completed the following transactions involving delivery trucks:

July

5

Traded in an old truck and paid $25,600 in cash for furniture. The accounting records on July 1 showed the cost of the old truck at $36,000 and related accumulated depreciation of $6,000. The furniture was estimated to have a six-year life and a $6,268 trade-in value. The invoice for the exchange showed these items:

Price of the furniture (equal to its fair value)	$	45,100
Trade-in allowance		(19,500	)
Total paid in cash	$	25,600

Dec.

31

Recorded straight-line depreciation on the furniture (to nearest whole month).

Required: Prepare journal entries to record the transactions.