Jan Jul 1 Oct 31 Dec 31 1 Traded in motor-carrier equipment with accumulated depreciation of $83,000 (cost of $136,000) for new equipment with a cash cost of $155,000. Jackson Freightway received a trade-in allowance of $71,000 on the old equipment and paid the remainder in cash. Sold a building that cost $545,000 and had accumulated depreciation of $245,000 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 $45,000. Jackson Freightway received $110,000 cash and a $620,000 note receivable. Purchased land and a building for a cash payment of $650,000. An independent appraisal valued the land at $185,900 and the building at $529,100. Recorded depreciation as follows: New motor-carrier equipment has an expected useful life of 1,300,000 miles and an estimated residual value of $25,000. Depreciation method is the units-of-production method. During the year, Jackson Freightway drove the equipment 190,000 miles. Depreciation on buildings is straight-line. The new building has a 40-year useful life and a residual value equal to $39,400. Jackson Freightway provides freight service. The company's balance sheet includes Land, Buildings, and Motor-carrier equipment. Jackson Freightway uses a separate accumulated depreciation account for each depreciable asset. During 2018, Jackson Freightway completed the following transactions: (Click the icon to view transaction data.) Requirement 1. Record the transactions in Jackson Freightway's journal. (Record debits first, then credits. Exclude explanations from all journal entries.) 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 $155,000. Jackson Freightway received a trade-in allowance of $71,000 on the old equipment and paid the remainder in cash. (Prepare a compound journal entry to record this transaction.) Date Jan 1 Journal Entry Accounts Debit Credit