Foley 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.

2013	July 1	Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50.
	Nov. 3	Incurred ordinary repairs on computer of $140.
	Dec. 31	Recorded 2013 depreciation on the basis of a four year life and estimated salvage value of $500.
2014	Dec. 31	Recorded 2013 depreciation.
2015	Jan. 1	Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.

Prepare the necessary entries. (Show computations.)

Answer rating: 100% (QA)

Journal entry Date account explanation debit credit July 12013 Computer 1900200 2100 Ca... View the full answer