During the current year, Blue Spruce Construction Ltd. traded in two relatively new small cranes (cranes no. 6RT and S79) for a larger crane that Blue Spruce expects will be more useful for the particular contracts that the company has to fulfill over the next couple of years. The new crane is acquired from Swifty Manufacturing Inc., which has agreed to take the smaller equipment as trade-ins and also pay $18,000 cash to Blue Spruce. The new crane cost Swifty $163,500 to manufacture and is classified as inventory. The following information is available: Blue Spruce Const. Swifty Mfg. Cost of crane #6RT $129,000 Cost of crane #S79 112,000 Accumulated depreciation, #SRT 12,000 Accumulated depreciation, #S79 15,000 Fair value, #6RT 128,000 Fair value, #579 84,500 Fair value of new crane $194,500 Cash paid 18,000 Cash received 18,000 Assume that this exchange has commercial substance. Prepare the journal entries on the books of (1) Blue Spruce Construction Ltd. and (2) Swifty Manufacturing Inc. Swifty uses a perpetual inventory system. (Credit account titles are automatically indented when the 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.) Blue Spruce Construction Debit Credit Equipment (Crane #879) Equipment (New) Accounts Receivable Loss on Disposal of Equipment Gain on sale of Equipment Sales Revenue Accumulated Depreciation - Equipment (Crane #879) Inventory Cash Accounts Payable No Entry Cost of Goods Sold Accumulated Depreciation - Equipment (Crane #6RT) Equipment (Crane #6RT) Swifty Manufacturing Account Titles and Explanation Debit Credit (To record sale with trade-in) (To record the cost) LINK TO TEXT Assume that this exchange lacks commercial substance. Prepare the journal entries on the books of (1) Blue Spruce Construction and (2) Swifty Manufacturing. Swifty uses a perpetual inventory system. (Credit account titles are automatically indented when the 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.) Blue Spruce Construction Account Titles and Explanation Debit Credit 7 7 7 Swifty Manufacturing Account Titles and Explanation Debit Credit 7 7 7