Exercise 10-19 Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,306in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.

Carlos Arruza Co.	Tony LoBianco Co.
Equipment (cost)	$30,856	$30,856
Accumulated depreciation	20,938	11,020
Fair value of equipment	13,775	17,081
Cash given up	3,306

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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 entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
(a)	Carlos Arruza Company:
(b)	Tony Lo Bianca Company:

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Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account titles are automatically indented when 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.)

No.	Account Titles and Explanation	Debit	Credit
(a)	Carlos Arruza Company
(b)	Tony LoBainco Company