Metlock 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 Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter No. Account Titles and Explanation (a) Exchange has commercial substance: (To record current depreciation.) $19,000 (To record exchange of the equipment.) (b) Exchange lacks commercial substance: 12,000 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance, Metlock'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.) 13,400 7,600 6,200 Debit Credit

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Metlock 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 $19,000 Cash paid 12,000 Cost of old melter (5-year life, $800 salvage value) 13,400 Accumulated depreciation-old melter (straight-line) 7,600 Secondhand fair value of old melter 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Metlock'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 (a) Exchange has commercial substance Debit Credit (To record current depreciation) (To record exchange of the equipment.) (b) Exchange lacks commercial substance: Metlock 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 $19,000 Cash paid 12,000 Cost of old melter (5-year life, $800 salvage value) 13,400 Accumulated depreciation-old melter (straight-line) 7,600 Secondhand fair value of old melter 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Metlock'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 (a) Exchange has commercial substance Debit Credit (To record current depreciation) (To record exchange of the equipment.) (b) Exchange lacks commercial substance: