Healy Fabrication Corp. wants to trade in its old drill press for a new one. The old drill press is on the books at a cost of $44,500, and it has a carrying value of $9,300. The new drill press has a list price of $78,700. Make the entry for Healy to acquire the new drill press under each of the following situations:

(a) Healy accepts the dealers offer to buy the new drill press by trading in the old drill press and paying the difference in cash. The dealer values the old drill press at $8,000.

(b) Healy will trade in the old drill press with a trade in allowance of $30,000 and pay the difference in cash.