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:

Indicate the effects (accounts, amounts, and + or −) of the following two items on the accounting equation, using the headings shown below.

1. The adjustment for depreciation made last year at the end of 2017.
2. The two expenditures for repairs and maintenance during January 2018.

Transcribed Image Text:

$ 1,850 Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency 24,000