The following are balances of selected items shown in the final trial balance of Pleasure Boats Charters on 31 Dec 2013 (end of reporting period):

Processing plant (at cost, purchased 10 April 2010) $148,650

Accumulated depreciation processing plant (109,135)

Charter boats 291,400

Accumulated depreciation charter boats (174,200)

Boat Purchase date Cost Estimated useful life Estimated residual value

1 25 Aug 2010 $61,000 4 years $3,400

2 5 Mar 2011 $70,600 4 years $3,400

3 2 Aug 2011 $75,600 4 years $3,600

4 23 Oct 2011 $84,200 5 years $3,200

Additional information:

Pleasure Boats Charters calculates depreciation to the nearest month using straight- line depreciation for all assets except the processing plant, which is depreciated at 30% on the reducing balance. Amounts are recorded to the nearest dollar.

The following transactions and events occurred during the year 2014:

Jan 22 Traded in boat 1 for a new boat (Boat 5) which cost $84,100. A trade- in allowance of $10,200 was received and the balance was paid in cash. Registration and painting costs of $1,500 were also paid in cash. The owner, Ron Yuen, estimated Boat 5s useful life and residual value at 5 years and $4,600 respectively.

Jun.02 The processing plant at a cash cost of $61,574. As the modernization significantly expanded the plants operating capacity and efficiency, Ron Yuen decided no revision to the depreciation rate was needed

Jul. 24 Sold Boat 3 for $25,000 cash.

Sep21 Exchanged Boat 2 (fair Value at exchange date: $10,640) for computer equipment. The computer equipment's fair value at exchange date was $10,550. The computer equipment originally cost $26,600 and had been depreciated in the previous owner's books by $15,850 to date of exchange. Ron Yuen estimated the computer equipment's useful life and residual value at 4 years and $320.

Required: Prepare journal entries (narrations are required) to record the transactions and events for year 2014