Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please correct the problem Required information Exercise 11-23 (Algo) Change in estimate; useful life and residual value of equipment (LO11-2, 11-5) [The following information applies

please correct the problem image text in transcribed
image text in transcribed
Required information Exercise 11-23 (Algo) Change in estimate; useful life and residual value of equipment (LO11-2, 11-5) [The following information applies to the questions displayed below.) Wardell Company purchased a mainframe on January 1, 2019, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year 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 $1,200. Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation in 2021. Assume 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. Round your final answers to nearest whole dollar.) Answer is complete but not entirely correct. No Event Credit General Journal Depreciation expense Accumulated depreciation-computer Debit 6,400 6,400 Exercise 11-23 (Algo) Part 2 2. Prepare the year-end journal entry for depreciation in 2021. Assume 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. Round your final answers to nearest whole dollar.) View transaction list Journal entry worksheet Record depreciation expense for 2021. Note: Enter debits before credits. Event General Journal Credit Debit 5.400 Depreciation expenso Accumulated depreciation computer [ 6,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Auditing An Evolving Agenda

Authors: Jagdish Pathak

1st Edition

3642060579, 978-3642060571

More Books

Students also viewed these Accounting questions