On January 2, 2013, Joshon Hardware 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,750
Accumulated depreciation as of January 2, 2013 . . . . . . . . . . . . . . . . . . . . . 19,000
New truck:
List price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000
Cash price without trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,100
Cash paid with trade-in. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,900
1. Give the journal entries on Joshon's books to record the purchase of the new truck.
2. Give the journal entries on Joshon's books if the cash paid was $18,000 and that amount is considered "large."