Question 1 Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has...
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Accounting
Question 1
Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. For each of the three independent situations, prepare the journal entries to record the exchange on the books of each company.
(a). Dorsett Company offered to exchange a similar machine plus $22,000. (The exchange has commercial substance for both parties.)
Holyfield Corporation
Dorsett Company
(b). Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
Holyfield Corporation
Winston Company
(c). Liston Company offered to exchange a similar machine, but wanted $2,800 in addition to Holyfield's machine. (The exchange has commercial substance for both parties.)
Holyfield Corporation
Liston Company
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