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

1.		Indigo Company offered to exchange a similar machine plus $32,660. (The exchange has commercial substance for both parties.)
2.		Sweet Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.		Pharoah Company offered to exchange a similar machine, but wanted $4,260 in addition to Bridgeport’s machine. (The exchange has commercial substance for both parties.)

In addition, Bridgeport contacted Novak Corporation, a dealer in machines. To obtain a new machine, Bridgeport must pay $132,060 in addition to trading in its old machine.

Bridgetport Indigo Sweet Pharoah Novak

Machine Cost $227,200 $170,400 $215,840 227,200 184,600

Accum. Dep. 85,200 63,900 100,820 106,500 0

Fair Value 130,640 97,980 130,640 134,900 262,700

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.)

1. Bridgeport Corp.

5 accounts

Indigo Company

5 accounts

2. Bridgeport Corp.

4 accounts

Sweet Company

3 accounts

3. Bridgeport Corp.

5 accounts

Pharoah Company

5 accounts

4. Bridgeport Corp.

5 accounts

Novak Company

3 accounts

(To Record exchange of inventory)

2 accounts

(To record cost of inventory)