Wardell Company purchased a mini computer on Jan 1, 2019 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 $5000. On Jan 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Prepare teh approriate adjusting entry for depreciation in 2021 to reflect estimate assuming that the company uses the sum-of-the-years's digits method instead of the straight-line method
Wardell Company purchased a mini computer on Jan 1, 2019 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 $5000. On Jan 1, 2021, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $900. Prepare teh approriate adjusting entry for depreciation in 2021 to reflect estimate assuming that the company uses the sum-of-the-years's digits method instead of the straight-line method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wardell Company purchased a mini computer on Jan 1, 2019 at a cost of $48,500. The computer has been
Prepare teh approriate
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