A Company Purchased a Computer System on January 1,2012,for $1,600,000

question 1

Essay

A company purchased a computer system on January 1,2012,for $1,600,000.Prepare the journal entries to record depreciation for the first six months of 2014 and the sale of the computer assuming it is sold on July 1,2014,for $1,000,000 cash.The straight-line method of depreciation was used based on an expected life of six years and a salvage value of $130,000.

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Definitions:

Semimembranosus

A muscle located in the posterior thigh, part of the hamstrings, playing a role in extending the hip and bending the knee.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, providing it with stability and allowing for a wide range of arm movements.

Infraspinatus

A muscle located on the back of the shoulder blade and is involved in the rotation and stabilization of the shoulder joint.