Nunca Word Processing Service Ltd uses the straight-line method of depreciation. The company's financial year end is 31 December. The following transactions and events occurred during the first three years 2016 July 1 Purchased an IBM computer from the Computer Centre for $6,500 cash plus sales tax of $500, and delivery costs of $250. Incurred ordinary repair costs of $440. Recorded 2016 depreciation on the basis of a four year life and Nov. 3 Dec. 31 estimated residual value of $1,250. 2012 Dec. 31 Recorded 2016 depreciation. Paid $1,800 for a major upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer. 2018 Jan. 1 Required: Prepare the necessary entries. Assume the goods and services are free of GST (Show computations.)