Kingbird Ltd$.$ traded a used welding machine $(cost$$$9,000,$ accumulated depreciation $$3,310,$ fair value $$2,820)$ for equipment with an

estimated fair value of $$5,740.$ Kingbirctalso paid $$2,870$ cash in the transaction.

Prepare the journal entry to record the exchange. The equipment results in different cash flows for Kingbird, compared with those the

welding machine produced. $($Credit account titles are automatically indented when the 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. List all debit entries

before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Equipment

Accumulated Depreciation $-$ Machinery

Loss on Disposal of Machinery

Machinery

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