1.Bonita 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. Bonita Corporation gave the machine plus $401to Windsor Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

Bonita Corp. Windsor Co.

(Old Machine) (New Machine)

Machine cost $342 $319

Accumulated depreciation 165 -0-

Fair value 101 502

For each company, prepare the necessary journal entry to record the exchange. (The exchange has 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 0 for the amounts.)

2.Blue Company exchanged equipment used in its manufacturing operations plus $3,600in cash for similar equipment used in the operations of Kingbird Company. The following information pertains to the exchange.

Blue Co. Kingbird Co.

Equipment (cost) $33,600 $33,600

Accumulated depreciation 22,800 12,000

Fair value of equipment 15,000 18,600

Cash given up 3,600

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 0 for the amounts.)

Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has 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 0 for the amounts.)

3.The following transactions occurred during 2020. Assume that depreciation of10% per year is charged on all machinery and5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year.

Jan.30A building that cost $142,560in 2003 is torn down to make room for a new building. The wrecking contractor was paid $5,508and was permitted to keep all materials salvaged.

Mar.10Machinery that was purchased in 2013 for $17,280is sold for $3,132cash, f.o.b. purchaser's plant. Freight of $324is paid on the sale of this machinery.

Mar.20A gear breaks on a machine that cost $9,720in 2012. The gear is replaced at a cost of $2,160. The replacement does not extend the useful life of the machine but does make the machine more efficient.

May18A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $5,940because of defective workmanship on the original base. The cost of the machinery was $15,336in 2014. The cost of the base was $3,780, and this amount was charged to the Machinery account in 2014.

June23One of the buildings is repainted at a cost of $7,452. It had not been painted since it was constructed in 2016.

Prepare general journal entries for the transactions.(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 0 for the amounts.)

4.Selected accounts included in the property, plant, and equipment section of Stellar Corporation's balance sheet at December 31, 2019, had the following balances.

Land $336,000

Land improvements 156,800

Buildings 1,232,000

Equipment 1,075,200

During 2020, the following transactions occurred.

1.A tract of land was acquired for $168,000as a potential future building site.

2.A plant facility consisting of land and building was acquired from Mendota Company in exchange for22,400shares of Stellar's common stock. On the acquisition date, Stellar's stock had a closing market price of $37per share on a national stock exchange. The plant facility was carried on Mendota's books at $123,200for land and $358,400for the building at the exchange date. Current appraised values for the land and building, respectively, are $257,600and $772,800.

3.Items of machinery and equipment were purchased at a total cost of $448,000. Additional costs were incurred as follows.

Freight and unloading $14,560

Sales taxes 22,400

Installation 29,120

4.Expenditures totaling $106,400were made for new parking lots, streets, and sidewalks at the corporation's various plant locations. These expenditures had an estimated useful life of15years.

5.A machine costing $89,600on January 1, 2012, was scrapped on June 30, 2020. Double-declining-balance depreciation has been recorded on the basis of a10-year life.

6.A machine was sold for $22,400on July 1, 2020. Original cost of the machine was $49,280on January 1, 2017, and it was depreciated on the straight-line basis over an estimated useful life of7years and a salvage value of $2,240.

Calculate the balance at December 31, 2020 in each of the following balance sheet accounts. (Hint:Disregard the related accumulated depreciation accounts.)

Balance at December 31, 2020

Land $

Land Improvements $

Buildings $

Equipment $