E8-6 Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2015 $ 395,000 256,200 During 2016, the following expenditures were incurred for the equipment: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency on January 2, 2016 4,000 48,000 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $29,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting entry that was made at the end of 2015 for depreciation on the equipment. (If no entry field.) required for a transaction/event, select "No journal entry required" in the first account View transaction list Journal entry worksheet 1 > Record the adjusting entry for depreciation on the manufacturing equipment during 2015. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal E8-6 Part 2 2. Starting at the beginning of 2016, what is the remaining estimated life? Remaining life years E8-6 Part 3 3. Prepare the journal entries to record the two expenditures during 2016. (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 1 2 > Record the expenditure for routine maintenance and repairs on the equipment. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the expenditure for the major overhaul of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal E8-6 Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2015 $ 395,000 256,200 During 2016, the following expenditures were incurred for the equipment: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency on January 2, 2016 4,000 48,000 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $29,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting entry that was made at the end of 2015 for depreciation on the equipment. (If no entry field.) required for a transaction/event, select "No journal entry required" in the first account View transaction list Journal entry worksheet 1 > Record the adjusting entry for depreciation on the manufacturing equipment during 2015. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal E8-6 Part 2 2. Starting at the beginning of 2016, what is the remaining estimated life? Remaining life years E8-6 Part 3 3. Prepare the journal entries to record the two expenditures during 2016. (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 1 2 > Record the expenditure for routine maintenance and repairs on the equipment. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the expenditure for the major overhaul of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Record entry Clear entry View general journal