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.)

Question

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.)

Quizplus · Accepted Answer

The Answer of 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.)

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

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