Gundrum Company purchased equipment on January 1, 2015 for $811,400. The equipment was expected to have a useful life of 10 years and a salvage value of $28,400. Gundrum uses the straight-line method of depreciation. At the beginning of 2020, Gundrum determined the total estimated life of the equipment was 13 years and the residual value would be $10,400 at the end of that time.

Prepare any entry needed in 2020 to account for this change. Record depreciation expense for 2020 on December 31, 2020. General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 21/25 ACCOUNT TITLE POST. REF. DEBIT CREDIT DATE Dec. 31. Depreciation Expense Accumulated Depreciation