In addition holyfield contacted greeley corporation a

Reference no: EM13480479

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

1. Dorsett Company offered to exchange a similar machine plus $48,484. (The exchange has commercial substance for both parties.)
2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3. Liston Company offered to exchange a similar machine, but wanted $6,324 in addition to Holyfield's machine. (The exchange has commercial substance for both parties.)

In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay $196,044 in addition to trading in its old machine.

Holyfield

Dorsett

Winston

Liston

Greeley
Machine cost $337,280 $252,960 $320,416 $337,280 $274,040
Accumulated depreciation 126,480 94,860 149,668 158,100 -0-
Fair value 193,936 145,452 193,936 200,260 389,980

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.)

Date

Account Titles and Explanation

Debit

Credit

1.Holyfield Corporation

Dorsett Company

2.Holyfield Corporation

Winston Company

3.Holyfield Corporation

Liston Company

4.Holyfield Corporation

Greeley Company

(To record sales)

(To record cost of goods sold)

Reference no: EM13480479

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