A Company Entered into the Following Transactions Concerning Its Computer

question 114

Essay

A company entered into the following transactions concerning its computer system:
On January 1,2012 purchased a computer system that cost $1,480,000.The estimated useful life of the computer is 3 years and salvage value is $40,000.Straight-line depreciation is to be used.On January 1,2013 the company determined that the estimated useful life of the computer would be 4 years instead of 3 years.The estimated salvage value will only be $10,000.
a.Prepare the journal entry to record depreciation expense for 2012.
b.Prepare the journal entry to record depreciation expense for 2013.

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Definitions:

Brainstorming

A collaborative idea generation technique that encourages participants to come up with creative solutions without judgment or criticism during the initial phase.

Lack Of Response

A situation where there is no reply or acknowledgment to a query, request, or stimulus, indicating potential disinterest or inability to engage.

Course Of Action

A plan or strategy that an individual or organization decides to undertake in response to or anticipation of an event or situation.

Unanimity

Complete agreement or consensus among all members or parties involved in a decision or situation.