On this assignment I need to prepare the journal entries to update depreciation and to record the exchange of moving vans.

Eagle Moving Comapany purchased a new moving van on October 1, 2011. The cash price of the new van is 33,750 and the company received a trade in allowance of 5600 for a 2009 model. The balance was paid in cash. The 2009 midel had been aquired on January 1, 2009 at a cost of 22,500. Depreciation has been recorded through December 31, 2010, on a straight line basis with 3 years expected life. No salvage, No commercial substance. TO DUE Prepare journal entries to update depreciation and to record the exchange of the moving vans. Journal Entries Title and Explanation Post ref Debit Credit