Jan 1: Traded in motor-carrier equipment with accumulated depreciation of $83,000 (cost of $136,000) for similar new equipment with a cash cost of $149,000. Russell Freightway received a trade-in allowance of $64,000 on the old equipment and paid the remainder in cash. (Prepare a compound journal entry to record this transaction.) Journal Entry Date Accounts Jan 1 Motor-carrier equipment (new) Accumulated depreciation, motor-carrier equipment Motor-carrier equipment (old) Cash Gain on exchange Debit 149,000 83,000 Credit 136,000 85,000 11,000 Jul 1: Sold a building that cost $560,000 and had accumulated depreciation of $260,000 through December 31 of the preceding year. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $40,000. Russell Freightway received $120,000 cash and a $410,000 note receivable. Start by recording depreciation expense on the building through July 1. Date Jul 1 Journal Entry Accounts Depreciation expense, building Accumulated depreciation, building Debit Credit