Jijang Excavations Ltd. (JEL) operates specialized equipment for installing natural gas pipelines. JEL, which has a December 31 year end, began 2020 with a single piece of equipment that had been purchased on January 1, 2017, for $41,000 and a truck that had been purchased on January 1, 2019, for $70,000. When the equipment was purchased, JELs management had estimated that the equipment would have a residual value of $5,000 and a useful life of six years. When the truck was purchased, management determined that it would have a useful life of four years and a residual value of $4,000. On March 31, 2020, JEL sold this piece of equipment for $30,000 cash. On April 1, 2020, JEL purchased replacement equipment with double the capacity for $78,400 cash. JELs management determined that this equipment would have a useful life of six years and a residual value of $10,000. Prepare all necessary journal entries for the year ended December 31, 2020. Assume that JEL uses the straight-line depreciation method for its equipment and the double-diminishing-balance method for its trucks.

Date Account Titles and Explanation Debit Credit Mar. Depreciation Expense 31 Accumulated Depreciation - Equipment (To record depreciation expense) Mar. 31 Cash Accumulated Depreciation Equipment Gain on Disposal (To record sale of equipment) Apr. Equipment 1 Cash Dec. 31 Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation expense on equipment) Dec. 31 Depreciation Expense