Step 1: Find the intercepts.
Given equation:
\[
x + 2y = 4
\]
To find the X-intercept, put \(y = 0\):
\[
x = 4
\]
Hence, the X-intercept is \((4, 0)\).
To find the Y-intercept, put \(x = 0\):
\[
2y = 4 \implies y = 2
\]
Hence, the Y-intercept is \((0, 2)\).
Step 2: Plot the graph.
Plot the points \((4, 0)\) and \((0, 2)\) on a graph paper and draw a straight line joining them.
This line intersects the X-axis at \((4, 0)\) and the Y-axis at \((0, 2)\).
Step 3: Find the area of the triangle.
The line forms a right-angled triangle with the coordinate axes.
Base = 4 units, Height = 2 units.
\[
\text{Area} = \frac{1}{2} \times \text{Base} \times \text{Height}
\]
\[
\text{Area} = \frac{1}{2} \times 4 \times 2 = 4 \text{ sq. units.}
\]
Step 4: Conclusion.
Hence, the area of the triangle formed by the line and the coordinate axes is \(4\) square units.
Final Answer:
\[
\boxed{\text{Area = 4 square units}}
\]