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 $27,140. (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 $3,540 in addition to Pearls 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 $109,740 in addition to trading in its old machine.

		Pearl		Martinez		Sandhill		Teal		Flint
Machine cost		$188,800		$141,600		$179,360		$188,800		$153,400
Accumulated depreciation		70,800		53,100		83,780		88,500		0
Fair value		108,560		81,420		108,560		112,100		218,300

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.	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)