On January 1, Year 1, Acadia Purchased a Computer System

question 145

Essay

On January 1, Year 1, Acadia purchased a computer system that cost $1,480,000. The estimated useful life of the computer is 3 years and residual value is $40,000. Straight-line depreciation is to be used. On January 1, Year 2, the company determined that the estimated useful life of the computer would be 4 years instead of 3 years. The estimated residual value will only be $10,000.
Prepare the journal entry to record depreciation expense for Year 1.
Prepare the journal entry to record depreciation expense for Year 2.

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Definitions:

Physiological Dependence

A condition characterized by the bodily reliance on a substance, where absence of the substance causes withdrawal symptoms.

Marijuana

Mild hallucinogen (also known as “pot” or “weed”) derived from the leaves and flowers of a particular type of hemp plant.

Endorphins

Endorphins are neurotransmitters produced by the brain that act as natural painkillers and mood elevators, often released in response to stress or physical activity.

Morphine

A potent opioid pain medication derived from the opium poppy used to treat severe pain.