7E Waterway Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Waterway Co. $38,640 26,220 17,250 4,140 Wildhorse Co. Account Titles and Explanation $38,640 13,800 21,390 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Debit Credit F

Waterway Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Waterway Co. Wildhorse Co. Equipment (cost) $38,640 $38,640 Accumulated depreciation 26,220 13,800 Fair value of equipment 17.250 21,390 Cash given up 4,140 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) F Account Titles and Explanation Debit Credit