Wardell Company purchased a mini computer on January 1, 2019, at a cost of $48,500. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wardell Company purchased a mini computer on January 1, 2019, at a cost of $48,500. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $5,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (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 1 <> Record the depreciation. 2. Prepare the appropriate adjusting entry for depreciation in 2021 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. Do not round intermediate calculations and round your final answers to nearest whole dollar.) View transaction list Journal entry worksheet く 1 へ Record the depreciation. Wardell Company purchased a mini computer on January 1, 2019, at a cost of $48,500. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $5,000. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (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 1 <> Record the depreciation. 2. Prepare the appropriate adjusting entry for depreciation in 2021 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. Do not round intermediate calculations and round your final answers to nearest whole dollar.) View transaction list Journal entry worksheet く 1 へ Record the depreciation.
Expert Answer:
Answer rating: 100% (QA)
1 Cost of asset 48500 Residual value 5000 Estimated life 5 years Annual ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
Wardell Company purchased a mini computer on January 1, 2009, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an...
-
Wardell Company purchased a mini computer on January 1, 2011, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an...
-
Wardell Company purchased a mini computer on January 1, 2016, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an...
-
Use the data given in Table 3.9 to compute the mean, standard deviation, coefficient of variation, and coefficient of skewness for the current ratio of JNJ. Table 3.9 Year 1990 1991 1992 1993 1994...
-
Suppose that the production function for Alfred Barbuda, a producer of fine violins, is given by the following: Q = 10K0.5L0.5. a. Suppose that Alfred is currently using 1 unit of capital. If he...
-
During 2018, Paul sells residential rental property for $290,000, which he acquired in 1997 for $145,000. Paul has claimed straightline depreciation on the building of $54,500. What is the amount and...
-
Using the method of Taylor series expansion or the method of polynomial fitting, develop the following finite difference schemes. a) \((4.13)\) b) \((4.17)\) c) \((4.25)\)
-
High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used...
-
Prepare General Journal entries to accrue employee fringe benefit costs for the week. Assume that the company matches the employees' payments for medical insurance and contributes an amount equal to...
-
For each of the following three employees calculate gross earnings, CPP contributions, EI premiums, income taxes, and net pay after these statutory withholdings. All employees are in British...
-
National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 9 million shares at $1 par Paid-in capital-excess of par Retained...
-
What factors should an entrepreneur consider when differentiating between CVC and VC investors?
-
Describe an investment opportunity that includes at least one real option. On what does the value of the option depend?
-
Liquidation preferences and participation are both common features of term sheets. How do these provisions work when there is a liquidation event like a winding up of the company or an acquisition?
-
What is hypothesis-driven entrepreneurship and how does it relate to real options? What are some examples of real options?
-
What are three important differences between real options and financial options?
-
The IRS must notify a taxpayer of its actions when: a) searching through the IRS computer files regarding information about the taxpayer. b) when the IRS contacts a third party regarding...
-
A company has the following incomplete production budget data for the first quarter: In the previous December, ending inventory was 200 units, which was the minimum required, at 10% of projected...
-
Identify four methods of assigning cost to ending inventory and cost of goods sold and briefly explain the difference in the methods.
-
During 2011, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company...
-
Best Buy Co, Inc. is a leading retailer specializing in consumer electronics. A condensed income statement and balance sheet for the fiscal year ended February 28, 2009, are shown below. Required: 1....
-
The following transactions relate to topics in this chapter. a. Purchased inventory on account, terms \(2 / n, n / 30\), accounted for using the perpetual method. b. Collected sales taxes on a...
-
Atlas Inc. issues short-term interest-bearing notes and uses the proceeds to purchase inventory. The company's profits for the year remain unchanged. Required Indicate how the use of the notes would...
-
List and briefly explain the primary characteristics of long-term debt securities. What are the primary distinctions between a debt security and an equity security?
Study smarter with the SolutionInn App