On February 1, 2015, WachingCo company acquired a machine for 50,000 in cash. The estimated useful life

was 11 years while the anticipated salvage value was 2,000. Below are presented a set of

independent situations:

1. The machine is completely destroyed by a fire on May 1, 2018. WachingCo is settled for an insurance of 30,000. Assume that the settlement was received during the next fiscal period.

2. On November 1, 2019, WachingCo sold the machine for 32,000 for cash to LaundryCo company.

3. On July 1, 2017, WachingCo trades its machine for a new equipment of LaundryCo. The exchange lacks

commercial substance.

a. Assume that WachingCo uses the straight-line depreciation method.

b. The fiscal year of WachingCo commences on January 1 and ends on December 31 of each year.

For each independent situation, present the journal entries to be made to record each transaction.