Wilkins Company Exchanged Its Old Computer for a Newer Model

question 86

Essay

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.

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Definitions:

Fugitive

A person who has escaped from captivity or is in hiding to avoid arrest or persecution.

Footprints

Marks left by a foot or shoe on a surface, often used metaphorically to refer to evidence or a trace of someone's presence or impact.

Valid Argument

An argument in which, if the premises are true, the conclusion necessarily follows, maintaining logical consistency.

Fugitive

A person who has escaped from capture or is in hiding, often to avoid arrest or persecution.