Wardell Company purchased a mainframe on January 1, 2016, at a cost of $48,000. The computer...

Wardell Company purchased a mainframe on January 1, 2016, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. 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 $1,200.

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

ekkarill92 answered 1 year ago

Wardell Company purchased a mainframe on January 1, 2016, at a cost of $40,000. The computer...

Wardell Company purchased a mainframe on January 1, 2016, at a cost of $40,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. 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 $400. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $58,000. The computer...

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $58,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $16,000. 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 $2,200. 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no...

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $44,000. The computer...

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $44,000. 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, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $800. Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. 2....

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $56,000. The computer...

Wardell Company purchased a mainframe on January 1, 2019, at a cost of $56,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $8,000. 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 $2,000. 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no...

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $43,000. The computer...

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $43,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. 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 $1,600. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $58,000. The computer...

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $58,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. 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 $2,200. Required: 1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year. 2....

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....

Wardell Company purchased a mini computer on January 1, 2016, at a cost of $48,500. The...

Wardell Company purchased a mini computer on January 1, 2016, at a cost of $48,500. The computer has been depreciated using the straight-line method over an estimated five-year useful 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 $900. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate....

Wardell Company purchased a mini computer on January 1, 2019, at a cost of $43,400. The...

Wardell Company purchased a mini computer on January 1, 2019, at a cost of $43,400. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,400. 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. 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If...

Wardell Company purchased a mini computer on January 1, 2019, at a cost of $47,650. The...

Wardell Company purchased a mini computer on January 1, 2019, at a cost of $47,650. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $4,900. 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 $870. Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate....

Question