Ask Question
13 October, 16:50

Vargas Company purchased a computer for $6,400 on January 1, 2016. The computer is estimated to have a 5-year useful life and a $2,200 salvage value. What adjusting entry would Vargas record on December 31, 2016 to recognize expense related to use of the computer?

+1
Answers (1)
  1. 13 October, 16:54
    0
    Purchasing cost of computer = $6,400

    useful life of computer = 5 year

    salvage value = $2,200

    Straight line depreciation per year:

    = (Cost - Salvage value) : Useful life

    = ($6,400 - $2,200) : 5

    = $4,200 : 5

    = $840

    Therefore, the journal entry is follows:

    Depreciation expense A/c Dr. $840

    To accumulated depreciation A/c $840

    (To record the depreciation expense)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Vargas Company purchased a computer for $6,400 on January 1, 2016. The computer is estimated to have a 5-year useful life and a $2,200 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers