Tires Outlet purchases the following used items at an auction for $32,000 cash: a drill press, a lathe, and a heavy-duty air compressor. The equipment is in excellent condition except for the electric motor on the lathe, which will cost $720 to replace with a new motor. Tires Outlet determines that selling prices for the used items are as follows: drill press, $6,720; lathe with an operational motor, $19,200; and air compressor, $8,400.

Prepare the entry to record (a) acquisition of the equipment and (b) replacement of the motor.

Note: Round your final answers to the nearest whole number.

Account NameDr.Cr.

(a)Equipment - Drill Press

Equipment - Lathe

Equipment - Compressor

Cash

(b)CashPrepaid InsuranceEquipmentLatheBuildingLandConstruction in ProcessAccumulated DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of ParCommon StockContribution RevenueGain on Asset ExchangeAccretion ExpenseDepreciation ExpenseInsurance ExpenseInterest ExpenseRepair ExpenseLoss on Asset ExchangeLoss on Asset ReplacementLoss on Construction of BuildingLoss on DisposalLoss on Settlement of Asset Retirement ObligationN/A

CashPrepaid InsuranceEquipmentLatheBuildingLandConstruction in ProcessAccumulated DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of ParCommon StockContribution RevenueGain on Asset ExchangeAccretion ExpenseDepreciation ExpenseInsurance ExpenseInterest ExpenseRepair ExpenseLoss on Asset ExchangeLoss on Asset ReplacementLoss on Construction of BuildingLoss on DisposalLoss on Settlement of Asset Retirement ObligationN/A