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I need help with requirement 3 please! On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process. The
I need help with requirement 3 please!
On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $54,200, has an ten-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufacturing equipment On January 4, 2021, $13,850 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $2,600 represented ordinary repairs and annual maintenance and $11,250 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 12 years. Required: 1. Prepare journal entries for the depreciation for 2019 and 2020. 2. Prepare journal entries for the 2021 expenditure. 3. Prepare journal entries for the depreciation for 2021. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries for the depreciation for 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Debit Credit December 31, 202 Depreciation expense 6,385 Accumulated depreciation-equipment 6,385 Required 2 Required 3 )Step by Step Solution
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