Question: 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

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.

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