E9-5 Determining Financial Statement Effects of Straight-Line Depreciation and Repairs [LO 9-2, LO 9-3]
Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances:
Homework Chpt 9 i Saved Help 2 E9-5 Determining Financial Statement Effects of Straight-Line Depreciation and Repairs [LO 9-2, LO 9-3] 5 Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following ints balances: Skipped Equipment Accumulated Depreciation (beginning of the year) $331, 000 229 , 500 eBook During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: References Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 3, 350 39, 000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $25,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2018, what is the remaining estimated life? 3. Prepare the journal entries to record the two expenditures for repairs and maintenance during 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment. Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Prev 2 of 8 Next >Required 1 Required 2 Required 3 .5 oints Prepare the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment. Skipped account field.) Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first View transaction list eBook Journal entry worksheet References A Record the adjusting entry for depreciation expense at year-end 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit Depreciation Expense 15,300 Accumulated Depreciation-Equipment 15,300 Record entry Clear entry View general journal BrawDuring 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 $ 3, 350 39,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $25,000 estimated residual value. The annual accounting period ends on December 31. Required: 1. Prepare the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2018, what is the remaining estimated life? es 3. Prepare the journal entries to record the two expenditures for repairs and maintenance during 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Starting at the beginning of 2018, what is the remaining estimated life? Remaining Estimated Life years 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 5 pints Prepare the journal entries to record the two expenditures for repairs and maintenance during 2018. (If no entry is required for a Skipped transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list eBook Journal entry worksheet B References Record the expenditure for ordinary repairs incurred. Note: Enter debits before credits. Transaction General journal Debit Credit 1 Clear entry View general journal Record entry 2 of 8 Next > Mc
