On January 1, 2019, Quick Stop, a convenience store, purchased a new soft-drink cooler. Quick Stop paid $15,380 cash for the cooler. Quick Stop also paid $750 to have the cooler shipped to its location. After the new cooler arrived, Quick Stop paid $222 to have the old cooler dismantled and removed. Quick Stop also paid $1,020 to a contractor to have new wiring and drains installed for the new cooler. Quick Stop estimated that the cooler would have a useful life of 8 years and a residual value of $500. Quick Stop uses the straight-line method of depreciation.
Required:
1. Prepare any necessary journal entries to record the cost of the cooler.
2. Prepare the adjusting entry to record 2019 depreciation expense on the new cooler.
3. What is the book value of the cooler at the end of 2019?
4. If Quick Stop had used a useful life of 12 years and a residual value of $800, how would this effect depreciation expense for 2019 and the book value of the cooler at the end of 2019?