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Part 1

Alpha Communications Company

purchased a computer for

$2,600,

debiting Computer Equipment. During

2014

and

2015,

Alpha Communications Company

recorded total depreciation of

$1,800

on the computer. On

January

1,

2016,

Alpha Communications Company

traded in the computer for a new one, paying

$2,400

cash. The fair market value of the new computer is

$4,300.

Journalize

Alpha Communications Company's

exchange of computers. Assume the exchange had commercial substance.

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Part 1

Let's begin by calculating the gain or loss on the exchange of computer equipment on

January

1.

Market value of assets received
Less:
Book value of asset exchanged
Cash paid
Gain or (Loss)

Part 2

Journalize

Alpha Communications Company's

exchange of computers. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date			Accounts and Explanation	Debit	Credit
Jan. 1