June 22

The used company truck was traded in for a new truck. The cost of the used truck in $10,000.00 and on March 31, the end of the pervious quater, it had depreciated $7530 (at $60 per month). The new truck has a list price of $14,000.00 and a trade-in allowance of $2,800.00 was given for the used truck. Check number 30565 was issued to Dobbins commerical Truck Sales and Repairs for the new truck. This trade has no commerical value, and no gain or loss will be recongized on this transaction.

First Entry: Record the depreciation, to the nearest month, on the old truck. Straight-line depreciation is $60.00 per month.

Second Entry: Record the trade-in.