Additional Exercise 278 Prepare the journal entries to record the following transactions for Ogleby Company which has a calendar year end and uses the straight-line method of depreciation. On September 30, 2015, the company exchanged old delivery equipment and $36,000 for new delivery equipment. The old delivery equipment was purchased on January 1, 2013, for $126,000 and was estimated to have a $18,000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31, 2014. It is estimated that the fair value of the old delivery equipment is 54,000 on September 30, 2015, (Credit account titles are automatically indented when the amount is entered Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit To record depreciation expense for the first 9 months of 2017) September 30, 2015 (To record exchange of old delivery equipment for new delivery equipment at a loss) On June 30, 2015, the company exchanged old office equipment and $40,000 for new office equipment. The old office equipment originally cost $80,000 and had accumulated depreciation to the date of disposal of $35,000. It is estimated that the fair market value of the old office equipment on June 30 was $60,000. The transaction has commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation June 30, 2015 Debit Credit