Prepare the necessary journal entries to record the following transactions in 2003 for Shula Company.
March 1: Exchanged old store equipment and $80,000 cash for new store equipment. The old store equipment originally cost $96,000 and had a book value of $64,000 on the date of exchange. The old store equipment had a fair market value of $76,000 on the date of exchange. Assume depreciation on the old equipment has already been recorded for the current year.
Aug. 31: Equipment with a 4-year useful life was purchased on January 1, 2000, for $60,000 and was sold for $36,000. The equipment had been depreciated using the straight-line method with an estimated salvage value of $12,000. Depreciation Expense was last recorded on December 31, 2002.