Headland Company exchanged equipment used in its manufacturing operations plus $3,240in cash for similar equipment used in the operations of Sage Company. The following information pertains to the exchange.

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Headland Company exchanged equipment used in its manufacturing operations plus $3,240 in cash for similar equipment used in the operations of Sage Company. The following information pertains to the exchange. Headland Cu. Sage Cu. Equipment (cost) $30,240 $30,240 Accumulated depreciation 20,520 10,800 Fair value of equipment 13,500 16,740 Cash given up 3,240 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.) Mow": TIES and Explanation Dehlt Credlt W: [ li [ li [ li l li Prepare the journal entries to record the exchange on the books of both companies. rusume 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.) Aioownt \"u and Explanation Debit Credlt new | l l_ l_ l_ l_ l_ | | l