On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $120,000 and used for eight years. Pillow recorded a gain of $20,300 on the sale. The equipment has a total useful life of 15 years and is depreciated on a straight-line basis. Pillow holds 70 percent of Sheet's voting common shares. Required: a. Prepare the journal entry made by Pillow on January 1, 20X7, to record the sale of equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the gain on equipment.. Note: Enter debits before credits. Event Debit Credit 1 General Journal b. Prepare the journal entries recorded by Sheet during 20X7 to record the purchase of equipment and year-end depreciation expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet