Wilkins Company exchanged its old computer for a newer model.The Old Computer was purchased for $22,000,with related accumulated depreciation of $15,500 to the date of the exchange.The new computer had a cash price of $30,200,and Wilkins Company was given a $7,500 trade-in allowance.This transaction has commercial substance.Prepare the general journal entry to record the exchange,recording the new computer in an account called New Computer.

Question

Quizplus · Accepted Answer

The Answer of Wilkins Company exchanged its old computer for a newer model.The Old Computer was purchased for $22,000,with related accumulated depreciation of $15,500 to the date of the exchange.The new computer had a cash price of $30,200,and Wilkins Company was given a $7,500 trade-in allowance.This transaction has commercial substance.Prepare the general journal entry to record the exchange,recording the new computer in an account called New Computer.

Wilkins Company Exchanged Its Old Computer for a Newer Model