Entries for Trade of Fixed Asset

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $551,000. Twin Pines received a trade-in allowance (fair market value) of $109,500 on the old equipment of a similar type and paid cash of $441,500. The following information about the old equipment is obtained from the account in the equipment ledger: cost, $364,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $237,600; annual depreciation, $21,600. Assuming that the exchange has commercial substance.

a. Journalize the entry to record the current depreciation of the old equipment to the date of trade-in.

	Depreciation Expense-Equipment
	Accumulated Depreciation-Equipment

b. Journalize the entry to record the exchange transaction on July 1. If an amount box does not require an entry, leave it blank.

	Accumulated Depreciation-Equipment
	Equipment
	Loss on Exchange of Equipment
	Equipment
	Cash

( I am not sure about entry name)