In January2018, Johnny's Catering purchased a portable food heater for $3,900cash. The journal entry to record the

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In January2018, Johnny's Catering purchased a portable food heater for $3,900cash. The journal entry to record the purchase included a debit to Catering Equipment. During 2018 and2019Johnny's Catering recorded total amortization of$2,800on the heater. On January 2020, Johnny's Catering traded in the old food heater for a new one that is more efficient, paying$2,900cash and accepting$400 for the trade-in. This exchange transaction has commercial substance. Journalize Johnny'sCatering's exchange of equipment.