Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December

Question:

Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years.

2010 July 1 Purchased a computer from the Computer Center for $2,100 cash plus sales tax of $150, and shipping costs of $50.
Nov. 3 Incurred ordinary repairs on computer of $140.
Dec. 31 Recorded 2010 depreciation on the basis of a four year life and estimated of $500.

2011 Dec. 31 Recorded 2011 depreciation.

2012 Jan. 1 Paid $400 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.

Instructions
Prepare the necessary entries

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...