Problem 10-8

Bonita Corporation wishes to exchange a machine used in its operations. Bonita has received the following offers from other companies in the industry.

1.		Windsor Company offered to exchange a similar machine plus $28,060. (The exchange has commercial substance for both parties.)
2.		Sheridan Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.		Skysong Company offered to exchange a similar machine, but wanted $3,660 in addition to Bonitas machine. (The exchange has commercial substance for both parties.)

In addition, Bonita contacted Concord Corporation, a dealer in machines. To obtain a new machine, Bonita must pay $113,460 in addition to trading in its old machine.

		Bonita		Windsor		Sheridan		Skysong		Concord
Machine cost		$195,200		$146,400		$185,440		$195,200		$158,600
Accumulated depreciation		73,200		54,900		86,620		91,500		0
Fair value		112,240		84,180		112,240		115,900		225,700

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.)