Pharoah Company exchanged equipment used in its manufacturing operations plus $3,660in cash for similar equipment used in the operations of Novak Company. The following information pertains to the exchange.

Pharoah Co. Novak Co.

Equipment (cost) $34,160 $34,160

Accumulated depreciation 23,180 12,200

Fair value of equipment 15,250 18,910

Cash given up 3,660 -

Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.