and part two & three

THANK YOU FOR YOUR TIME. WILL RATE!

Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances Equipment Accumulated Depreciation (beginning of the year) $230,000 108,000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 2,250 28,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $14,000 estimated residual value. The annual accounting period ends on December 31 Required: Indicate the effects (accounts, amounts, and+ for increase and for decrease) of the following two items on the accounting equation, using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2017. 2. The two expenditures for repairs and maintenance during January 2018. (Record each entry separately.) Item 2017 2018 Assets Liabilities Stockholders' Equity During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Depreciation (straight-line) $65,087 (13 years) 18,600 (6 years) Original Residual Estimated Value Life 15 years 8 years Asset Cost Machine A $84,700 Machine B $9,600 28,500 3,700 The machines were disposed of in the following ways a. Machine A: Sold on January 2 for $28,500 cash b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is requirecd for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the disposal of Machine A for $28,500 cash on January 2, 2014 Note: Enter debits before credits Date General Journal Debit Credit Jan 02 During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Depreciation (straight-line) $65,087 (13 years) 18,600 (6 years) Original Residual Estimated Value Cost Asset Machine A $84,700 Machine B 28,500 Life 15 years 8 years $9,600 3,700 The machines were disposed of in the following ways a. Machine A: Sold on January 2 for $28,500 cash b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal) Required 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the disposal of Machine B due to irreparable damage from an accident Note: Enter debits before credits Date General Journal Debit Credit Jan 02