Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $47,000. The computer...

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $47,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $3,800.

Required:
1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year.
2. Prepare the year-end journal entry for depreciation in 2018. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method.

Expert Solution

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ekkarill92 answered 1 year ago

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