Foley Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end...
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Accounting
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.
2013 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 2013 depreciation on the basis of a four year life and estimated salvage value of $500.
2014 Dec. 31 Recorded 2013 depreciation.
2015 Jan. 1 Paid $300 for an upgrade of the computer. This expenditure is expected to increase the operating efficiency and capacity of the computer.
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Prepare the necessary entries. (8 marks)
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