On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also received $7,000 cash from Cowboy Company. Gold's machine had an original cost of $80,000, accumulated depreciation to date of $14,500, and a fair market value of $60,000. Cowboy's machine had an original cost of $95,000 and a book value of $45,000 and a fair value of $53,000. Required: a. Prepare the necessary journal entry by Gold Company to record this transaction. b. Prepare the necessary journal entry by Cowboy Company to record this transaction. Or ori $4 Chart of Accounts ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 New Machine 182 Old Machine 198 Accumulated Depreciation-Old Machine LIABILITIES 211 Accounts Payable 231 Salaries Payable REVENUE 411 Sales Revenue 882 Gain on Exchange EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense. Accounts LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expense 892 Loss on Exchange 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings General Journal 1 2 3 4 5 PAGE 10 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT General Journal 1 2 3 4 5 GENERAL JOURNAL DATE ACCOUNT TITLE PAGE 10 POST. REF DEBIT CREDIT