Waterway Corporation wishes to exchange a machine used in its operations. Waterway has received the following offers from other companies in the industry. 1 Wildhorse Company offered to exchange a similar machine plus $31,740. (The exchange has commercial substance for both parties.) 2 Sheffield Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Tamarisk Company offered to exchange a similar machine, but wanted $4.140 in addition to Waterway's machine. (The exchange has commercial substance for both parties.) In addition, Waterway contacted Vaughn Corporation, a dealer in machines. To obtain a new machine, Waterway must pay $128,340 in addition to trading in its old machine. Waterway Wildhorse Sheffield Tamarisk Vaughn Machine cost $220.800 $165.600 $209,760 $220,800 $179.400 Accumulated depreciation 82.800 62,100 97.980 103,500 -0- Fair value 126,960 95,220 126,960 131,100 255,300 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 O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Waterway Corporation Wildhorse Company Debit Credit