During the Current Year,a Company Acquired a New Computer with a Cash

question 25

Essay

During the current year,a company acquired a new computer with a cash price of $12,800 by exchanging an old one on which the company received a $1,500 trade-in allowance (with the balance of $11,300 paid in cash).The old computer cost $9,000 and its accumulated depreciation was $5,500 as of the exchange date.Assuming the exchange transaction had commercial substance,prepare the journal entry to record the exchange.

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Definitions:

Magnetic Pulses

Magnetic pulses refer to the use of a magnetic field to deliver short, powerful bursts of energy, often used in medical treatments like Transcranial Magnetic Stimulation (TMS).

TMS Technique

Transcranial magnetic stimulation, a noninvasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of certain conditions.

Endocrine System

The system of glands that release secretions directly into the bloodstream and affect organs elsewhere in the body.

Synapse

The junction between two neurons or a neuron and a muscle cell, where nerve impulses are transmitted between cells.