Problem 10-8 Kingbird Corporation wishes to exchange a machine used in its operations. Kingbird has received the following offers from other companies in the industry. 1. Oriole Company offered to exchange a similar machine plus $30,820. (The exchange has commercial substance for both parties.) 2. Waterway Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Wildhorse Company offered to exchange a similar machine, but wanted $4,020 in addition to Kingbirds machine. (The exchange has commercial substance for both parties.) In addition, Kingbird contacted Sheffield Corporation, a dealer in machines. To obtain a new machine, Kingbird must pay $124,620 in addition to trading in its old machine. Kingbird Oriole Waterway Wildhorse Sheffield Machine cost $214,400 $160,800 $203,680 $214,400 $174,200 Accumulated depreciation 80,400 60,300 95,140 100,500 0 Fair value 123,280 92,460 123,280 127,300 247,900 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. Kingbird Corporation Oriole Company 2. Kingbird Corporation Waterway Company 3. Kingbird Corporation Wildhorse Company 4. Kingbird Corporation Sheffield Company (To record exchange of inventory) (To record cost of inventory)