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The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1
The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1 each year. 2018 . Acquired $56,000 cash from the issue of common stock 2. Purchased a computer system for $27,700. It has an estimated useful life of five years and a $3,210 salvage value. 3. Paid $1,800 sales tax on the computer system 4. Collected $32,690 in fees from clients 5. Paid $1,050 in fees for routine maintenance to service the computers. 6. Recorded double-declining-balance depreciation on the computer system for 2018. 2019 1. Paid $780 for repairs to the computer system. 2. Bought off-site backup services to maintain the computer system, $1,150 3. Collected $35,690 in fees from clients. 4. Paid $840 in fees to service the computers 5. Recorded double-declining-balance depreciation for 2019 2020 1. Paid $3,500 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change. 2. Paid $890 in fees to service the computers 3. Collected $33,290 in fees from clients. 4. Recorded double-declining-balance depreciation for 2020
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