During 2025, Meadows Corporation completed the following transactions: 

Record the transactions in the journal of Meadows Corporation.

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Jan. 1 Apr. 1 Dec. 31 Traded in old office equipment with book value of $40,000 (cost of $132,000 and accumulated depreciation of $92,000) for new equipment. Meadows Corporation also paid $80,000 in cash. Fair value of new equipment is $122,000. Assume the exchange had commercial substance. Sold equipment that cost $30,000 (accumulated depreciation of $25,000 through December 31 of the preceding year). Meadows Corporation received $2,000 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $4,000 residual value.