Wardell Company purchased a mini computer on January 1, 2014, at a cost of $33,2
ID: 2571282 • Letter: W
Question
Wardell Company purchased a mini computer on January 1, 2014, at a cost of $33,200. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,200. On January 1, 2016, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600.
Please answer all parts of question.
Wardell Company purchased a mini computer on January 1, 2014, at a cost of $33,200. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,200. On January 1, 2016, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600.
Please answer all parts of question.
Wardell Company purchased a mini computer on January 1, 2014, at a cost of $33,200. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of 3,200. On January 1, 2016, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to 5600. Required 1. Prepare the appropriate adjusting entry for depreciation in 2016 to reflect the revised estimate. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general jourmal 2. Prepare the appropriate adjusting entry for depreciation in 2016 to reflect the revised estimate Assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general jourmalExplanation / Answer
1. Stright line method
Journal entry
2. Sum of the years digit method
Journal entry
Depritiation expenses 2575 Accumulated Depritiation 2575Related Questions
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