Additional Problem 1

The property, plant, and equipment accounts for Bonita Company held the following opening balances on January 1, 2017 (the first day of Bonitas fiscal year):

Land		$502,000
Equipment		786,000
Accumulated DepreciationEquipment		142,000
Machinery		456,000
Accumulated DepreciationMachinery		167,000

The following transactions took place during 2017 (assume all transactions took place on January 1):

a.		Bonita Company paid $19,200 related to the machinery and $7,700 related to the equipment for maintenance to keep the assets in normal working order.
b.		Equipment with an original cost of $39,800 and accumulated depreciation of $29,600 was traded in on some new equipment. The new equipment had a fair value of $52,000, and Bonita was given a trade in allowance of $4,400 for the old equipment.
c.		Bonita Company made an agreement with GRN Ltd. to exchange two similar plots of land. Bonitas land had an original cost of $502,000 and a fair value of $722,000. GRNs land had an original cost of $526,700 and a fair value of $760,600. Bonita also paid $38,600 in cash to GRN as part of the transaction. The exchange lacks commercial substance.
d.		Bonita paid $69,700 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment.

Prepare the journal entries to record the above transactions on the books of Bonita Company.