On August $1,$ Gold company exchanged a machine for a similar machine owned by Cowboy Company and also received $$7,000$ cash from Cowboy Company. Gold$$s machine had an original cost of $$80,000,$ accumulated depreciation to date of $$14,500,$ and a fair market value of $$60,000.$ Cowboy$$s machine had an original cost of $$95,000$ and a book value of $$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.