Exercise 20-17 (Algo) Change in estimate; useful life and residual value of equipment [LO20-4]

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[The following information applies to the questions displayed below.] Wardell Company purchased a mini computer on January 1, 2019, at a cost of $31,500. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,000. 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.

Exercise 20-17 (Algo) Part 2

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.)