Using the chart of accounts in Figure 2-1, Determine the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as the result of purchasing a new backhoe to replace an existing backhoe. The new backhoe costs $127,500 and it will be paid for by trading in the existing backhoe for a credit of $20,000 and the remaining $107,500 will be financed through the dealership. The existing backhoe was purchased for $105,000 and $97,380 of depreciation had been taken. Add in the missing values shown in the attached figure.

INCOME STATEMENT EXPENSES REVENUES 910 Other Income Value 3 EQUIPMENT EXPENSES Value 4 BALANCE SHEET ASSETS LIABILITIES 220 Construction 380 Long-Term Equipment Liabilities Value 1 Value 2 250 Less Acc. Depreciation EQUITY Value 5 430 Current Period Net Income Value 6 PROFIT Value 6 Value 7 Value 7 Value 8 Value 8 INCOME STATEMENT EXPENSES REVENUES 910 Other Income Value 3 EQUIPMENT EXPENSES Value 4 BALANCE SHEET ASSETS LIABILITIES 220 Construction 380 Long-Term Equipment Liabilities Value 1 Value 2 250 Less Acc. Depreciation EQUITY Value 5 430 Current Period Net Income Value 6 PROFIT Value 6 Value 7 Value 7 Value 8 Value 8