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.$)$