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

Wildhorse Company offered to exchange a similar machine plus $$31,740.($The exchange has commercial substance for both parties.$)$

Sheffield Company offered to exchange a similar machine. $($The exchange lacks commercial substance for both parties.$)$

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.

$\backslash$table$[[,$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 $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit