Kingbird 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. List price of new melter: $22,400$ cash paid: $14,200$ cost of old melter $(5$ year life, $$900$ salvage valye$)15,900$ accumulated depreciation$-$old melter $($straight$-$line$)$ : $8,900$ secondhand fair value of old melter $7,400.$ prepare the journal entries necessary to record this exchange, assumimng that the exchange $($a$)$ has commerical substance, and $($b$)$ lacks commerical substance. Kingbird's fiscal year ends on demcember $31,$ and deprecation has been recorded through decemeber $31,2024$

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a Assuming the exchange has commercial substance 1 Record the purchase of the new electric wax melte... View the full answer