On August 1. Gold Company exchanged a machine for a similar machine owed by Cowboy Company and also received $7,000 cash from Cowboy Company Gold's machine had an original cost $80,000, accumulated depreciation to date of $14,500, and a fair market value of $60,000 Cowboy's machine had an original cost of $95,000 and a bood value of $45,000 and a fair value of $53,000.
Required:
a. Prepare the necessary journal entry by Gold Company to record this transaction.
b. Prepare the necessary journal entry by Cowboy Company to record this transaction.