Savo Help Save & Exit Submit Stacey Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2021 an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2020 573,300 44,120 In early January 2021, the following expenditures were incurred for repairs and maintenance Routine naintenance and repairs on the equipment Major overhaul of the equipment $ 918 10,000 The equipment is being depreciated on a straight-line basis over an estimated life of 14 years, with a $4700 estimated residual value. The company's fiscal year ends on December 31. Required: 1. Calculate the depreciation expense for the manufacturing equipment for 2020. Depreciation expense 2. Prepare the journal entries to record the two expenditures that occurred during 2021. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prev 1 of 4 !!! Next > 2. Prepare the journal entries to record the two expenditures that occurred during 2021 (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 2 1 Record the payment for ordinary repairs incurred Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal 3. Prepare the adjusting entry at December 31, 2021, to record the depreciation of the manufacturing equipment, assuming no change in the estimated life or residual value of the equipment. (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 Record depreciation expense. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 4. Indicate the accounts affected and the amount of the effects of the journal entries you prepared for (1) to (3) on the accounting equation (Enter any decreases to account balances with a minus sign.) Date Assets Liabilities Shareholders' Equity Dec 31, 2020 During 2021 Dec 31, 2021