Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below) Wardell Company purchased a mini computer on January 1, 2019, at a cost of

image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. 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 $600. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Required information [The following information applies to the questions displayed below.) Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. 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 $600. 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.)

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

International Accounting

Authors: Shirine Rathore

2nd Edition

8120336739, 9788120336735

More Books

Students also viewed these Accounting questions