Q1- Joda company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2016 July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2016 depreciation on the basis of a four year life and estimated salvage value of $500. 2017 Dec. 31 Recorded 2017 depreciation. 2018 Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Q1- Joda company uses the straight-line method of depreciation. The company's fiscal
year end is December 31. The following transactions and events occurred during the first
three years.
2016 July 1 Purchased a computer from the Computer Center for $1,900 cash plus
sales tax of $150, and shipping costs of $50.
Nov. 3 Incurred ordinary repairs on computer of $140.
Dec. 31 Recorded 2016 depreciation on the basis of a four year life and
estimated salvage value of $500.
2017 Dec. 31 Recorded 2017 depreciation.
2018 Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected
to increase the operating efficiency and capacity of the computer.
Transcribed Image Text:Q1- Joda company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. 2016 July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50. Nov. 3 Incurred ordinary repairs on computer of $140. Dec. 31 Recorded 2016 depreciation on the basis of a four year life and estimated salvage value of $500. 2017 Dec. 31 Recorded 2017 depreciation. 2018 Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.
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