Waterway Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Waterway Co. $42,000 28,500 18,750 4,500 Wildhorse Co. $42,000 15,000 23,250 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Waterway Company: Debit Credit

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