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Sheffield Group has negotiated the purchase of a new piece of automatic equipment at a price of HK$7,980 plus trade-in, fob factory

Accounting

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Sheffield Group has negotiated the purchase of a new piece of automatic equipment at a price of HK$7,980 plus trade-in, fob factory. Sheffield paid HK$7.980 cash and traded in used equipment. The used equipment had originally cost HK$70.680; it had a book value of HK$47,880 and a secondhand fair value of HK$52,280, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of HK$1.220. a Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable, prepare the general journal entry to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Include in your journal entry separate account entries for both the new and old equipment. I no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Account Titles and Explanation Debit Credit