Wardell Company purchased a mini computer on January 1, 2011, at a cost of $40,000. The computer

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Wardell Company purchased a mini computer on January 1, 2011, at a cost of $40,000. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,000. On January 1, 2013, 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 2013 to reflect the revised estimate.

2. Repeat requirement 1 assuming that the company uses the sum-of-the-years’-digits method instead of the straight-line method.


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Related Book For  book-img-for-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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