If you replace equipment and the old one is thrown away, what accounts are affected?

ANSWER

The BIDaWIZ Team's Answer:

You will debit an "equipment," account, to record

the new purchase, and credit the "cash" account, or

a liability account, if you financed the purchase.

In addition, you will debit the accumulated depreciation

account, for the old piece of equipment, and you will 

credit the old "equipment" account, to write-off the

old piece of equipment.