Monty Corporation wishes to exchange a machine used in its operations. Monty has received the following offers from other companies in the industry. 1. Flounder Company offered to exchange a similar machine plus $31,740. (The exchange has commercial substance for both parties.) 2. Culver Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Larkspur Company offered to exchange a similar machine, but wanted $4,140 in addition to Montys machine. (The exchange has commercial substance for both parties.) In addition, Monty contacted Cullumber Corporation, a dealer in machines. To obtain a new machine, Monty must pay $128,340 in addition to trading in its old machine. Monty Flounder Culver Larkspur Cullumber Machine cost $220,800 $165,600 $209,760 $220,800 $179,400 Accumulated depreciation 82,800 62,100 97,980 103,500 0 Fair value 126,960 95,220 126,960 131,100 255,300 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.	Monty Corporation
	Flounder Company
2.	Monty Corporation
	Culver Company
3.	Monty Corporation
	Larkspur Company
4.	Monty Corporation
	Cullumber Company
	(To record exchange of inventory)
	(To record cost of inventory)

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