DEPRECIATION AND MIDYEAR ACQUISITION. On April 1, 19x3, Cardiff Corporation purchased a large computer for $83,000 and placed it in service. The computer has an expected life of 5 years and a residual value of $23,000. The company records depreciation annually at the end of the year. Part-year depreciation is calculated using the nearest-whole-month convention.

REQUIRED:

1. Prepare the adjusting entries to be made at December 31, 19x3, and December 31, 19x4, to record straight-line depreciation expense.

2. Prepare the adjusting entries to be made at December 31, 19x3, and December 31, 19x4, to record sum-of-the-years’-digits depreciation expense.