On July 2, 2020, Covenant Construction Londons areas dedicated general contractorpurchased a 312GR Skid Steer (i.e., construction equipment).Covenant traded in equipment with a book valueof $2,000 (initial cost $40,000) and paid $50,035in cashone 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 alljournal entriesyou consider necessaryrelating to the above information.Round to the nearest dollar.