Foley Word Processing Service Uses the Straight-Line Method of Depreciation $\quad$

question 114

Essay

Foley 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. 2016 $\quad$ July 1 $\quad$ Purchased a computer from the Computer Center for $\$ 1,900$ cash plus sales tax of $\$ 150$ , and shipping costs of $\$ 50$ .

$\quad$$\quad$$\quad$ Nov. 3 $\quad$ Incurred ordinary repairs on computer of $\$ 140$ .
$\quad$$\quad$$\quad$ Dec. 31 $\quad$ Recorded 2016 depreciation on the basis of a four year life and estimated salvage value of $\$ 500$ .
2017 $\quad$ Dec. 31 $\quad$ Recorded 2017 depreciation.
2018 $\quad$ Jan. 1 $\quad$$\quad$ Paid $\$ 300$ for an upgrade of the computer. This expenditure is expected to increase the operating efficiency ano capacity of the computer. Instructions
Prepare the necessary entries. (Show computations.)

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Definitions:

Hexane

A straight-chain alkane with six carbon atoms, typically used as a non-polar solvent in organic chemistry.

Net Molecular Dipole Moment

The overall measure of the molecular polarity, determined by the sum of all individual bond dipole moments within a molecule, taking into account their direction and magnitude.

Molecules

The smallest unit of a chemical compound that can exist; made up of two or more atoms bonded together.

Molecular

Relating to or consisting of molecules, the smallest particle in a chemical element or compound that has the chemical properties of that element or compound.