Annie, Inc

question 175

Essay

Annie, Inc. purchased a computer for $5,000. During 2018 and 2019, the company recorded total depreciation of $4,000 on the computer. On January 1, 2020, the company exchanges the computer for a new one, paying $4,000 cash. The market value of the new computer is $6,000. Prepare the journal entry to record this transaction. Assume the exchange has commercial substance. Omit explanation.

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Definitions:

Spacing Between Cells

In spreadsheets or tables, it refers to the distance or gap between individual cells, affecting the visual layout and readability.

Roman Numerals

A numeral system originating from ancient Rome, using combinations of letters from the Latin alphabet (I, V, X, L, C, D, M) to represent numbers.

Different First Page

A feature in word processing software that allows the first page of a document to have a different header or footer than the rest of the pages.

Format Page Numbers

The process of customizing the appearance and sequence of page numbers in a document.