PinaCompany purchased equipment on January 2, 2016, for $121,300. The equipment had an estimated useful life of 5 years with an estimated salvage value of $12,800.Pinauses straight-line depreciation on all assets. On January 2, 2020,Pinaexchanged this equipment plus $12,200in cash for newer equipment. The old equipment has a fair value of $50,400.

Prepare the journal entry to record the exchange on the books ofPinaCompany. Assume that the exchange has commercial substance.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Pina Company purchased equipment on January 2, 2016, for $121,300. The equipment had an estimated useful life of 5 years with an estimated salvage value of $12,800. Pina uses straight-line depreciation on all assets. On January 2, 2020, Pina exchanged this equipment plus $12,200 in cash for newer equipment. The old equipment has a fair value of $50,400. Prepare the journal entry to record the exchange on the books of Pina Company. Assume that the exchange has commercial substance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 2 Equipment Accumulated Depreciation-Equipment 86800 Cash 12200 Equipment 121300