Swifty Company purchased a computer system for $64,600 on January 1, 2024. It was depreciated based on a 6-year life and an $19,000 salvage value. On January 1, 2026, Swifty revised these estimates to a total useful life of 4 years and a salvage value of $10,100. Prepare Swifty's entry to record 2026 depreciation expense. Swifty uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Depreciation Expense Debit 17750 Credit Accumulated Depreciation-Equipment 17750
Swifty Company purchased a computer system for $64,600 on January 1, 2024. It was depreciated based on a 6-year life and an $19,000 salvage value. On January 1, 2026, Swifty revised these estimates to a total useful life of 4 years and a salvage value of $10,100. Prepare Swifty's entry to record 2026 depreciation expense. Swifty uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Depreciation Expense Debit 17750 Credit Accumulated Depreciation-Equipment 17750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Swifty Company purchased a computer system for $64,600 on January 1, 2024. It was depreciated based on a 6-year life and an
$19,000 salvage value. On January 1, 2026, Swifty revised these estimates to a total useful life of 4 years and a salvage value of
$10,100.
Prepare Swifty's entry to record 2026 depreciation expense. Swifty uses straight-line depreciation. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter O for the amounts. List debit entry before credit entry.)
Account Titles and Explanation
Depreciation Expense
Debit
17750
Credit
Accumulated Depreciation-Equipment
17750
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