Question

Coronado Corporation wishes to exchange a machine used in its operations. Coronado has received the following offers from other Companies in the industry. 1. Whispering Company offered to exchange a similar machine plus $30,360. (The exchange has commercial substance for both parties.) 2. Metlock Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Bonita Company offered to exchange a similar machine, but wanted $3,960 in addition to Coronado's machine. (The exchange ha commercial substance for both parties.) In addition, Coronado contacted Windsor Corporation, a dealer in machines. To obtain a new machine, Coronado must pay $122,760 in addition to trading in its old machine. Coronado Whispering Metlock -Bonita Windsor Machine cost $211,200 $158,400 $200,640 $211,200 $171,600 Accumulated depreciation 79,200 59,400 93,720 99,000 Fair value 91,080 121,440 125,400 244,200 121,440 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 Entry” for the account titles and enter o for the amounts.)