Phillips Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On

Question:

Phillips Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Phillips Corporation gave the machine plus $680 to Luzinski Business Machine Company (dealer) in exchange for a new machine. This transaction has commercial substance. Assume the following information about the machines.

Instructions
For each company, prepare the necessary journal entry to record theexchange.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...