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Nunca Word Processing Service Ltd uses the straight-line method of depreciation. The company's financial year end is 31 December. The following...

屏幕快照 2018-05-14 下午4.00.45.pngPrepare the necessary entries. Assume the goods and services are free of GST (Show computations.) 

屏幕快照 2018-05-14 下午4.00.45.png

Nunca Word Processing Service Ltd uses the straight-line method of depreciation. The
company’s financial year end is 31 December. The following transactions and events
occurred during the first three years. 2016 July 1 Purchased an IBM computer from the Computer Centre for $6,500
cash plus sales tax of $500, and delivery costs of 5250. Nov. 3 Incurred ordinary repair costs of 5440. Dec. 31 Recorded 2015 depreciation on the basis of a four year life and
estimated residual value of $1,250. 2017 Dec. 31 Recorded 2015 depreciation. 2018 Jan. 1 Paid $1,800 for a major upgrade of the computer. This expenditure is
expected to increase the operating efficiency and capacity ofthe
computer.

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