Bonita Corporation wishes to exchange a machine used in its operations. Bonita has received the following offers from other companies in the industry.

1. Windsor Company offered to exchange a similar machine plus $29,900. (The exchange has commercial substance for both parties.)

2. Sheridan Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)

3. Skysong Company offered to exchange a similar machine, but wanted $3,900 in addition to Bonita's machine. (The exchange has commercial substance for both parties.)

In addition, Bonita contacted Concord Corporation, a dealer in machines. To obtain a new machine, Bonita must pay $120,900 in addition to trading in its old machine.

Bonita Windsor Sheridan Skysong Concord

Machine cost $208,000 $156,000 $197,600 $208,000 $169,000

Accumulated depreciation 78,000 58,500 92,300 97,500 -0-

Fair value 119,600 89,700 119,600 123,500 240,500

For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (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.)

No. Account Titles and Explanation Debit Credit

1.

Bonita Corporation

Windsor Company

2.

Bonita Corporation

Sheridan Company

3.

Bonita Corporation

Skysong Company

4.

Bonita Corporation

Concord Company

(To record exchange of inventory)

(To record cost of inventory)