On January 1, 2017, Frostburg Company purchased for $68,500,equipment having a service life of six years and an estimatedresidual value of $4,000. Frostburg has recorded depreciation ofthe equipment using the straight-line method. On December 31, 2019,before making any annual adjusting entries, the equipment wasexchanged for new machinery having a fair value of $35,000. Thetransaction has commercial substance. Use this information toprepare all General Journal entries (without explanation) requiredto record the events for December 31, 2019.
