Prepare the appropriate adjusting entry for depreciation

Assignment Help Financial Accounting

Reference no: EM131256169

Wardell Company purchased a mini computer on January 1, 2011, at a cost of $44,250. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,500. 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 $870.

Required:

1. Prepare the appropriate adjusting entry for depreciation in 2013 to reflect the revised estimate. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)

2. Prepare the appropriate adjusting entry for depreciation in 2013 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 particular event, select "No journal entry required" in the first account field.)

Reference no: EM131256169

Questions Cloud

Profitable pharmaceutical corporations contrasts : When it comes to research and innovation, the record of the big, profitable pharmaceutical corporations contrasts poorly with that of the small biotechnology companies that are responsible for most of today's medical advances.

How will the transaction be reported on the tax return : On November 2, Brown corp sold equipment with a basis of 22,000 For 30,000. Depreciation to date amounted to 3,000. a. How will the transaction be reported on the tax return? Explain how the sale of a business asset which is not a capital asset can r..

Which company should you choose : Sacramento Glow has submitted a bid of $200. You check with your local bank and find that +1 = 10 baht and +1 = 8 rupees. Which company should you choose?

What is the distance between the two engineers : Two engineers wish to estimate the distance across a lake. One pounds two rocks together under water on one side of the lake and the other submerges his head and hears a small sound 0.62 s later, as indicated by a very accurate stopwatch. What is ..

Prepare the appropriate adjusting entry for depreciation : Wardell Company purchased a mini computer on January 1, 2011, at a cost of $44,250. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,500. Prepare the appro..

Calculate the pressure for bubbles of the same size : Calculate the pressure in the small 10- m-diameter droplets that are formed by spray machines. Assume the properties to be the same as water at 15°C. Calculate the pressure for bubbles of the same size.

What is the stock rate of return : A perpetual preferred stock pays a fixed dividend of $9 and sells for $100. What is the stock's rate of return? A $1,000 bond has an annual coupon of 5 percent and a price of $692. Find the number of years to maturity if comparable bonds yield 10 p..

Does your state follow the attractive nuisance doctrine : Does your state follow the attractive nuisance doctrine, and, if so, how does it apply to private swimming pools? Can the Andersons hold the Cookes responsible for Joseph's death?

Focus on strategic advertising plan : Scott, Inc. (Scott) is a manufacturer of handmade glycerine soap and candles. The company has been in business for 15 years and has its headquarters in Yorba Linda, California. Historically, Scott’s revenues arose predominantly from sales within Nort..

User Account

All Pages