On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $221,095. Twin Pines received a trade-in allowance (fair market value) of $48,095 on the old equipment of a similar type and paid cash of $173,000. The following information about the old equipment is obtained from the account in the equipment ledger: cost, $170,900; accumulated depreciation on December 31, the end of the preceding fiscal year, $110,100; annual depreciation, $11,010.

Assuming that the exchange has commercial substance, journalize the entries to record (a) the current depreciation of the old equipment to the date of trade-in and (b) the exchange transaction on July 1. Refer to the Chart of Accounts for exact wording of account titles.

a. Journalize the entries to record the current depreciation of the old equipment to the date of trade-in. Refer to the Chart of Accounts for exact wording of account titles.

b. Journalize the entries to record the exchange transaction on July 1. Refer to the Chart of Accounts for exact wording of account titles.