Cost and Depreciation On January 1, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop pald $23,000 cash for the cooler. Quick Stop also paid $730 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $2,410 to have the old cooler dismantled and removed. Quick Stop also paid $820 to a contractor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of 6 years and a residual value of $230. Quick Stop uses the straight-line method of depreciation. 1. Prepare any necessary journal entries to record the cost of the cooler. If an amount box does not require an entry, leave it blank. Jan. 1 2. Prepare the adjusting entry at the end of the year to record depreciation expense on the new cooler. If an amount box does not require an entry, leave it blank, Dec. 31 3. What is the book value of the cooler after the adjusting entry is made? 4. Conceptual Connection: If Quick Stop had used a useful life of 10 years and a residual value of $1,500, how would this effect depreciation expense and the book value of the cooler at the end of the year? Depreciation expense Book value of the cooler at the end of the year