Exercise 10-19 (Part Level Submission) Martinez Company exchanged equipment used in its manufacturing operations plus $4,020 in cash for similar equipment used in the operations of Sandhill Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Martinez Co. $37,520 25,460 16,750 4,020 Sandhill Co. $37,520 13,400 20,770 (a) Your answer is correct. 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 o for the amounts.) Debit Credit Account Titles and Explanation Martinez Company: "Equipment TAccumulated Depreciation 1 Equipment 1 6080 25460 T LOROPOL 37520 4020 T Cash Sandhill Company Equipment 16750T TAccumulated Depreciation 13400 | TCash 402011 TLoss on Disposal of Equipn 33501 1 Equipment 37520 (b) 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 o for the amounts.) Account Titles and Explanation Debit Credit Martinez Company. Sandhill Company