Exercise 10 19 Flounder Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Culver Company. The following iefornation pertains to the exchange. Flounder Co. $42,000 28,500 18,750 4,300 Culver Co. $42,000 15,000 23,250 Equipnvent (cost) Fair value of equipment Cash given up 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 ente Debit Credit Prera re the ournal ries to oecord the enhan-on tooks of both compa es. Assume that the exchange has commerda st tance (Credir account teles are automatically inde ted when an ant eerw Creda