During 2014,Storey Company Acquired a New Computer with a Cash

question 41

Essay

During 2014,Storey Company acquired a new computer with a cash price of $12,800 by exchanging an old one on which Storey received a $1,500 trade-in.The old computer had cost $9,000 and its accumulated depreciation to the date of exchange was $5,500.This transaction has commercial substance.Prepare the journal entry to record the exchange.

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Definitions:

Core Competency

Fundamental strength or advantage that a business possesses, central to its operations and critical to its long-term success.

Key Success Factors

Critical elements or factors required for an organization to achieve its business goals and objectives.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, market position, and customer service.

Maquiladora

A factory in Mexico run by a foreign company and exporting its products to the country of that company, benefiting from lower labor costs and favorable trade agreements.