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Wash N' Set Corp

question 35

Essay

Wash N' Set Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Wash N' Set exchanges the equipment for new equipment,paying $54,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.


Definitions:

Objectivity Concept

An accounting principle that requires financial and accounting information to be independent and based on measurable and verifiable data.

Unit of Measure

A standard quantity used to express a physical quantity, ensuring uniformity in the reporting of financial and operational data.

Business Entity Concept

An accounting principle that treats a business as separate from its owners or shareholders for financial reporting purposes.

Internal Users

Internal users are individuals or groups within an organization who use financial information to make decisions about the operations of the company, such as management and employees.

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