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.

Headland Co.

Sage Co.

Equipment (cost)$30,240$30,240Accumulated depreciation20,52010,800Fair value of equipment13,50016,740Cash given up3,240

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.)

Account Titles and Explanation

Debit

Credit

Headland Company:

Sage Company:

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.)

Account Titles and Explanation

Debit

Credit

Headland Company

Sage Company