Exercise 10-18 Carla Vista Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Martinez Limited. Carla Vista also paid Martinez $3,200 in cash. The following information pertains to the exchange. Martinez Equipment (cost) Accumulated depreciation Fair value of equipment Carla Vista $54,500 31,500 26,000 $60,500 20,500 29,200 Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance. (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.) Carla Vista Limited Debit Credit Account Titles and Explanation Equipment 29200 Accumulated Depreciation 31500 Cash 3200 Equipment 54500 Gain on Disposal of Equ 3000 Martinez Limited Debit Account Titles and Explanation Credit Cash 3200 Equipment 26000 Accumulated Depreciation 20500 Loss on Disposal of Equipn 10800 Equipment 60500 Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined not to have commercial substance. (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 0 for the amounts.) Carla Vista Limited Account Titles and Explanation Debit Credit Equipment 26200 Accumulated Depreciation 31500 Equipment 54500 Cash 3200 Martinez Limited Account Titles and Explanation Debit Credit Cash Equipment Accumulated Depreciation