Pearl Corporation wishes to exchange a machine used in its operations. Pearl has received the following offers from other companies in the industry. 1. Martinez Company offered to exchange a similar machine plus $29,440. (The exchange has commercial substance for both parties.) 2. Sandhill Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Teal Company offered to exchange a similar machine, but wanted $3,840 in addition to Pearl's machine. (The exchange has commercial substance for both parties.) In addition, Pearl contacted Flint Corporation, a dealer in machines. To obtain a new machine, Pearl must pay $119.040 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Pearl Martinez Sandhill Teal Flint $204,800 $153,600 $194.560 $204,800 $166,400 76,800 57,600 90.880 96,000 117,760 88,320 117,760 121,600 236,800 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 for the amounts.) Debit Credit No. Account Titles and Explanation 1. Pearl Corporation Martinez Company 2. Pearl Corporation Sandhill Company 3. Pearl Corporation Teal Company 4. Pearl Corporation Flint Company (To record exchange of inventory) (To record cost of inventory)