In January2018, Johnny's Catering purchased a portable food heater for$3,900cash. The journal entry to record the purchase included a debit to Catering Equipment. During 2018 and2019Johnny's Catering recorded total amortization of$2,800on the heater. On January 2020,Johnny's Catering traded in the old food heater for a new one that is more efficient, paying$2,900cash and accepting$400 for the trade-in. This exchange transaction has commercial substance. Journalize Johnny'sCatering's exchange of equipment.

Complete the journal entry below. (Record debits first, then credits. Exclude explanations from journal entries.)

General Journal

Date

Accounts

Debit

Credit

Jan. 2