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Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during

Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years.

2013July 1Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50.
Nov. 3Incurred ordinary repairs on computer of $140.
Dec. 31Recorded 2013 depreciation on the basis of a four year life and estimated salvage value of $500.
2014Dec. 31Recorded 2013 depreciation.
2015Jan. 1Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.

Prepare the necessary entries. (Show computations.)


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