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

Kingbird Company exchanged equipment used in its manufacturing operations plus $4,380 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Kingbird Co. $40,880 27,740 18,250 4,380 Oriole Co. $40,880 14,600 22,630