Refer to E9-4. Data From E9-4 Wiater Company operates a small manufacturing facility. On January 1, 2018,
Question:
Refer to E9-4.
Data From E9-4
Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances:
During the first week of January 2018, the following expenditures were incurred for repairs and maintenance:
The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31.
Required:
1. Indicate the effects (accounts, amounts, and + or −) of the 2018 adjustment for depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value.
Show computations.
2. Give the adjusting entry that should be made at the end of 2018 for depreciation.
Step by Step Answer:
Fundamentals Of Financial Accounting
ISBN: 9781265440169
7th Edition
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby