Mark's Repair Service Uses the Straight-Line Method of Depreciation

Essay

Mark's Repair 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 equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250.
Nov. 3 Incurred ordinary repairs on computer of $240.
Dec. 31 Recorded 2013 depreciation on the basis of a four-year life and estimated salvage value of $455
2014 Dec. 31 Recorded 2014 depreciation.
2015 Jan. 1 Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment.
Instructions
Prepare the necessary entries. (Show computations.)