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Wardell Company purchased a mini computer on January 1, 2019, at a cost of $37,450. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,700. 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 $910.

Required:
1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate.

Required: 1. Prepare the appropriate adjusting entry for depreciation in 2021 to reflect the revised estimate. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the depreciation. Note: Enter debits before credits. Event Credit General Journal Depreciation expense Accumulated depreciation Debit 14,980 14,980

Unable to figure this out. I also put 2695 and that was wrong.

Answer 1

Answer

2021 Enrty-

Depreciation Expense Dr . 2880

to P&l Credit 2880

Calculation

2 year depreciation = 37450-3700/5= 6750 , 6750*2=13500

Revised depreciation = 23950-910/8 = 2880

because remaining life is 8 yeas.