[The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, 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, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Exercise 11-23 (Static) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method.
[The following information applies to the questions displayed below.] Wardell Company purchased a minicomputer on January 1, 2022, 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, 2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Exercise 11-23 (Static) Part 2 2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining- balance method instead of the straight-line method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
B
![!
Required information
Exercise 11-23 (Static) Change in estimate; useful life and residual value of equipment [LO11-2, 11-5]
[The following information applies to the questions displayed below.]
Wardell Company purchased a minicomputer on January 1, 2022, 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,
2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to
$900.
Exercise 11-23 (Static) Part 2
2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-
balance method instead of the straight-line method.
No
1
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest whole dollar.
Event
1
> Answer is complete but not entirely correct.
General Journal
Depreciation expense
Accumulated depreciation-computer
Debit
3,889 x
Credit
7,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdee031c-43ba-48d5-8665-29437d5e923b%2F93a41ea5-0a0e-4778-a742-ebf4fb37776a%2Fpagsrpd_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Exercise 11-23 (Static) Change in estimate; useful life and residual value of equipment [LO11-2, 11-5]
[The following information applies to the questions displayed below.]
Wardell Company purchased a minicomputer on January 1, 2022, 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,
2024, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to
$900.
Exercise 11-23 (Static) Part 2
2. Prepare the year-end journal entry for depreciation on December 31, 2024. Assume that the company uses the double-declining-
balance method instead of the straight-line method.
No
1
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest whole dollar.
Event
1
> Answer is complete but not entirely correct.
General Journal
Depreciation expense
Accumulated depreciation-computer
Debit
3,889 x
Credit
7,200
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