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

1.		Splish Company offered to exchange a similar machine plus $33,120. (The exchange has commercial substance for both parties.)
2.		Blossom Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.		Blue Company offered to exchange a similar machine, but wanted $4,320 in addition to Novaks machine. (The exchange has commercial substance for both parties.)

In addition, Novak contacted Kingbird Corporation, a dealer in machines. To obtain a new machine, Novak must pay $133,920 in addition to trading in its old machine.

		Novak		Splish		Blossom		Blue		Kingbird
Machine cost		$230,400		$172,800		$218,880		$230,400		$187,200
Accumulated depreciation		86,400		64,800		102,240		108,000		0
Fair value		132,480		99,360		132,480		136,800		266,400

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.)

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Assignment Gradebook ORION Downloadable Textbook PRINTER VERSION RACK NEXT CALCULATOR PULL SCREEN Novak Corporation wishes to exchange a machine used in its operations. Novak has received the following offers from other compares in the industry. 1. Splish Company offered to exchange a similar machine plus $33,120. (The exchange has comercial substance for both parties) 2. Blossom Company offered to exchange a similar machine. (The exchange ads commercial substance for both parties.) 3. Blue Company offered to exchange a similar machine, but wanted $4,320 in addition to Novak's machine. (The exchange has commercial substance for both parties.) pay $133,920 in addition to trading in as old machine. In addition, Novak contacted Kingbird Corporation, a dealer in machines. To obtain a new machine, Novak u Novak Splish Blossom Blue Kingbird Machine cost $230,400 $172,800 $218,880 $230,400 $167,200 Accumulated depreciation 86,400 64,800 102,240 108.000 Fair value 132,480 99,360 132,480 136,800 266,400 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit net Indent manually. It ne entry is required, select "Ne Entry for the account titles and enter for the amo ceed when amont entered Do No. Account Tities and Explanation 1. Novak Corporation Machinery Accumulated Deprecation-Machinery Loss on Disposal of Machinery die R2 0 Wien s. Inc. All Rights Reserved. A Division Agnment URCES A19 Machinery Splish Company BE Study 2. Novak Corporation blossom company Novak Corporation diddo non blue compa A19 art - - Novak Corporation Kingbird Company XX 2 (To record exchange of inventory)

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