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Concord Company purchased an electric wax melter on April 30,2025, by trading in its old...

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Accounting

Concord Company purchased an electric wax melter on April 30,2025, 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 31, and depreciation has been recorded through December 31,2024.
(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 0 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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