Question $5$ of $10$

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Crane's Repair Service uses the straight$-$line method of depreciation. The company's fiscal year$-$end is December $31.$ The following transactions and events occurred during the first three years.

$2021$ July $1$ Purchased equipment from the Equipment Center for $$7,100$ cash plus sales tax of $$400,$ and shipping costs of $$350.$

Nov. $3$ Incurred ordinary repairs on computer of $$410.$

Dec. $31$ Recorded $2021$ depreciation on the basis of a four$-$year life and estimated salvage value of $$490.$

$2022$ Dec. $31$ Recorded $2022$ depreciation.

$2023$ Jan. $1$ Paid $$3,900$ for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment.

Prepare the necessary entries. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit