ACCT 111 Journal Entries Global Flow Inc Accounting Problems

CP 8?6Global Flow Inc. purchased a computer on January 1, 2019 for $3,000cash. It had an estimated useful life of three years and no salvagevalue. Global Flow made the following changes to the computer:

Mar. 1, 2019 Added storage capacity at a cost of $1,000. This had noeffect on salvage value or estimated useful life.

Apr. 1, 2020 Added a new processing board for $2,000, whichextended the estimated useful life of the computeranother three years but did not affect salvage value.

Required:

1. Prepare a journal entry to record each of the above expenditures.Assume all amounts are material. Descriptions are not necessary.

2. Calculate and prepare journal entries to record depreciationexpense for 2019 and 2020 using the double?declining balancemethod.

 Assume a December 31 fiscal year?end and that thecompany uses the ½ year rule to calculate depreciation expense inthe year of acquisition and disposal.