On January 2, 2008, Butler Delivery Company traded with a dealer an old delivery truck for a newer model. Data relative to the old and new trucks follow:

Old truck:
Original cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,000
Accumulated depreciation as of January 2, 2008 . . . . . . . . . . . . . . . . . . . . . . . 15,000
New truck:
List price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Cash price without trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,400
Cash paid with trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,800

1. Give the journal entries on Butler’s books to record the purchase of the new truck.
2. Give the journal entries on Butler’s books if the cash paid was $15,600 and that amount is considered “large.”