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.
2017 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 2017 depreciation on the basis of a four year life and estimated salvage value of $500.
2018 Dec. 31 Recorded 2018 depreciation.
2019 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.)

Question

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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.
2017 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 2017 depreciation on the basis of a four year life and estimated salvage value of $500.
2018 Dec. 31 Recorded 2018 depreciation.
2019 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.)

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