Question

Required information [The following information applies to the questions displayed below.] Wardell Company purchased a mainframe on January 1, 2019, at a cost of $46,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $7,000. 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 $1,000. Required: 1. Prepare the year-end journal entry for depreciation in 2021. No depreciation was recorded during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answer to nearest whole dollar.)

Answer 1

Answer stvcu ght line melhod saluage Value Cost bepreciation xpense = uefut e 4b000 $ Ho00 800 $1800 F800 Depreciation for 2019 and 2020 - $46000-$ i5600 In 2021, Revised Boolk Value = 30,400 Sqlleage Value - $ l00o Remainng usehul lefe 8 yeav $30u00-lo00 Depreciation £xpense = $3615 Jouonnal Ent dn 2021 Debll Credit $ 3615 bepie ciation Expense $36a To Acem ulatd depieciation

Depreciation o 2014 and 2020 $15600 439400 Revised Boot value looo sillage valuc = Remauning usefus hfe = 8 yeas sm of yeas digits= 1+2 t3 45+ 6 + 7+ 36 DEPeda tion Expensc in 202i = ($30,400- lo00) X 36 6533 17 Jouenal Enby Depie ciatio Expense 6S33 $6033 To Accamulated deprecia tion