On July 2, 2020, Covenant Construction London's area's dedicated general contractor purchased a 312GR Skid Steer (i.e., construction equipment). Covenant traded in equipment with a book value of $2,000 (initial cost $40,000) and paid $50,035 in cash one month after the purchase. The old equipment could have been sold for $9,535 at the date of the trade but was accepted for trade-in allowance of $9,500 on the new equipment. Required: a) Prepare all journal entries you consider necessary relating to the above information. Round to the nearest dollar. [8]