Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wardell Company purchased a mini computer on January 1, 2016, at a cost of $31,500. The computer has been depreciated using the straight-line method over

image text in transcribed

Wardell Company purchased a mini computer on January 1, 2016, at a cost of $31,500. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate. 2. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate. Assuming that the company uses the sum-of-the-years'-digits method instead of the straight-line method. Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar) View transaction list Journal entry worksheet Record the depreciation. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions