Question: Vargas Company purchased a computer for $ 6 , 8 0 0 on January 1 , 2 0 1 6 . The computer is estimated

Vargas Company purchased a computer for $6,800 on January 1,2016. The computer is estimated to have a 8-year useful life and a $2,400 salvage value. What adjusting entry would Vargas record on December 31,2016 to recognize expense related to use of the computer?

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!

Q:

Lucia and Olga have decided to buy some commercial real estate through a corporation. The corporation will buy commercial properties, earn money from rent paid by tenants to cover the operating...

Q:

Alaska Company purchased a computer to use in their business on January 1, 2014 at a cost of $10,000. The computer's estimated useful life was 5 years, and the residual value is $400. Alaska Company...

Q:

1. Why are adjusting entries recorded at the end of the accounting period? A.The data from the temporary accounts (revenues, expenses, and dividends) must be moved into the retained earnings account....

Q:

Vargas Company purchased a computer for $4,400 on January 1 Year 1 The computer is estimated to have a 5 year useful life and a $1200 savage value. What adjusting entry would Vargas record on...

Q:

1. Securities which could be classified as held-to-maturity are a. redeemable preferred stock. b. warrants. c. municipal bonds. d. treasury stock. 2. Unrealized holding gains or losses which are...

Q:

Vargas Company purchased a computer for $ 4 , 0 0 0 on January 1 , Year 1 . The computer is estimated to have a 4 - year useful life and a $ 1 , 0 0 0 salvage value. What adjusting entry would Vargas...

Q:

Vargas Company purchased a computer for $3,800 on January 1, 2016. The computer is estimated to have a 5-year useful life and a $900 salvage value. What adjusting entry would Vargas record on...

Q:

What effect will the following closing entry have on the retained earnings account? Service Revenue 20,600 Interest Expense Operating Expenses Retained Earnings 1,200 16,400 3,000 Vargas Company...

Q:

Vargas Company purchased a computer for $6,400 on January 1, 2016. The computer is estimated to have a 5-year useful life and a $2,200 salvage value. What adjusting entry would Vargas record on...

Q:

The following entry is taken from the journal of a merchandising company: Account Title Cost of Goods Sold Merchandise Inventory Debit Credit 6,000 6,000 What is the effect of this entry on the...

Q:

Vargas Company purchased a computer for $3,000 on January 1, 2016. The computer is estimated to have a 5-year useful life and a $500 salvage value. What adjusting entry would Vargas record on...

Q:

If f(x) is defined as follows, find (a) f(-1), (b) f(0), and (c) f(2). f(x) = (a) f(-1)= (b) f(0) = (c) f(2)= 2 X 0 2x+4 if x 0 (Simplify your answer.) (Simplify your answer.)...

Q:

For the month of October, Kingston Sales Ltd. had the following transactions: $175,000 in sales plus HST; 30% of which were on account, the remaining sales were cash. The cost of the inventory sold...

Q:

Part 1 ( Chapter 1 ) : Research Case Coca - Cola Access a recent copy of The Coca - Cola Company s SEC 1 0 - K filing at www . coca - cola.com and address the following: 1 . What companies does Coca...

Q:

Law enforcement agencies have evolved over the course of time to be identified as loose coupling/open organizational systems. Research the following: organizational structure, rank structure,...