Splish Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $$15,200$ plus trade$-$in$,$ f$.$o$.$b$.$ factory. Splish Inc. paid $$15,200$ cash and traded in used equipment. The used equipment had originally cost $$70,200$; it had a book value of $$32,500$ and a secondhand market value of $$36,700,$ as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $$2,800.$

$($a$)$

$6$ Your answer is partially correct.

Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Equipment

Accumulated Depreciation$-$Equipment

Gain on Disposal of Equipment

Equipment

cash