Eckan Word Processing Service Uses the Straight-Line Method of Depreciation

question 18

Essay

Eckan Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years.
2013 July 1 Purchased a computer from the Computer Center for $1,900 cash plus sales tax of $150, and shipping costs of $50.
Nov. 3 Incurred ordinary repairs on computer of $140.
Dec. 31 Recorded 2013 depreciation on the basis of a four year life and estimated residual value of $500.
2014 Dec. 31 Recorded 2014 depreciation.
2015 Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.
Instructions
Prepare the necessary entries. (Show computations.)

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Definitions:

Positive and Negative Effects

Refers to the beneficial or harmful outcomes that result from actions, processes, or conditions, impacting various aspects of life or the environment.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Work

The effort or activity directed towards the production or accomplishment of something, typically for earning income.

Family Stressors

Events or conditions within the family unit that cause emotional strain and tension among its members.