Part 3 - Non-monetary exchanges Patriots Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the operations of Hawks Company. The following information pertains to the exchange: Patriots Compann Hawks Compann 31,000 30,000 12,000 17.500 uipment (cost) Accumulated Depreciation Fair value of equipment Cash given u 20,00 5,50 2,00 a. Prepare the journal entries below to record the exchange on the books of both Companies. Assume the exchange has commercial substance b. Prepare the journal entries below to record the exchange on the books of both Companies. Assume the exchange lacks commercial substance