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:

Electrons

Particles within atoms that carry a negative electrical charge and serve as the main conductors of electrical current in solids.

Covalent Bonds

A type of chemical bond involving the sharing of electron pairs between atoms, which results in a stable balance of attractive and repulsive forces between atoms.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting around it.

Substance

A form of matter with a specific chemical composition and set of properties that distinguish it from other forms of matter.