Question: 2 4 Part 2 of 2 points Required information Exercise 20-17 (Algo) Change in estimate; useful life and residual value of equipment (LO20-4] [The following

2 4 Part 2 of 2 points Required information Exercise 20-17 (Algo) Change in estimate; useful life and residual value of equipment (LO20-4] [The following information applies to the questions displayed below] Wardell Company purchased a mini computer on January 1, 2019, at a cost of $36,600. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,600. On January 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $600. Mc Graw Hill Exercise 20-17 (Algo) Part 2 2. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate, assuming that the company uses the sum-of-the-years-digits method instead of the straight-line method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.) 1 No Answer is complete but not entirely correct. Event General Journal 1 Depreciation expense GD Prev 4 of 5 Next > Debit Credit 5.066 422:45

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!