Larkspur Ltd$.$ traded a used welding machine $($cost $$9,400,$ accumulated depreciation $$3,430,$ fair value $$3,550)$ for equipment with an estimated fair value of $$4,840.$ Larkspur also paid $$2,420$ cash in the transaction.

Prepare the journal entry to record the exchange. The equipment results in different cash flows for Larkspur, 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