Prepare the Journal Entries to Record the Following Transactions for Ogleby

Essay

Prepare the journal entries to record the following transactions for Ogleby Company which has a calendar year end and uses the straight-line method of depreciation.
a) On September 30 2017 the company exchanged old delivery equipment and $36000 for new delivery equipment. The old delivery equipment was purchased on January 1 2015 for $126000 and was estimated to have a $18000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31 2016. It is estimated that the fair value of the old delivery equipment is $54000 on September 30 2017.
(b) On June 30 2017 the company exchanged old office equipment and $40000 for new office equipment. The old office equipment originally cost $80000 and had accumulated depreciation to the date of disposal of $35000. It is estimated that the fair market value of the old office equipment on June 30 was $60000. The transaction has commercial substance.