Phillips Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Phillips Corporation gave the machine plus $680 to Luzinski Business Machine Company (dealer) in exchange for a new machine. This transaction has commercial substance. Assume the following information about the machines. Phillips Corp. Luzinski Co. (Old Machine) (New Machine) Machine cost $580 $540 Accumulated depreciation 280 0 Fair value 170 850 Instructions For each company, prepare the necessary journal entry to record the exchange