Concord Company purchased an electric wax melter on April 30,2025, by trading in its old...
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Concord Company purchased an electric wax melter on April by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. Prepare the journal entries necessary to record this exchange, assuming that the exchange a has commercial substance, and b lacks commercial substance. Concord's fiscal year ends on December and depreciation has been recorded through December Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all debit entries before credit entries. No Account Titles and Explanation Debit Credit a Exchange has commercial substance: Accumulated Depreciation Equipment To record current depreciation. Accumulated Depreciation Equipment Equipment Cash Equipment To record exchange of the equipment. b Exchange lacks commercial substance: Depreciation Expense Accumulated Depreciation Equipment To record current depreciation. Accumulated Depreciation Equipment Cash Equipment Gain on Disposal of Equipment To record exchange of the equipment. 
Concord Company purchased an electric wax melter on April by trading in its old gas model and paying the balance in cash.
The following data relate to the purchase.
Prepare the journal entries necessary to record this exchange, assuming that the exchange a has commercial substance, and b lacks
commercial substance. Concord's fiscal year ends on December and depreciation has been recorded through December
Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for
the account titles and enter for the amounts. List all debit entries before credit entries.
No Account Titles and Explanation
Debit
Credit
a Exchange has commercial substance:
Accumulated Depreciation Equipment
To record current depreciation.
Accumulated Depreciation Equipment
Equipment
Cash
Equipment
To record exchange of the equipment.
b Exchange lacks commercial substance:
Depreciation Expense
Accumulated Depreciation Equipment
To record current depreciation.
Accumulated Depreciation Equipment
Cash
Equipment
Gain on Disposal of Equipment
To record exchange of the equipment.
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