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	$	71,500
Accumulated depreciation through 2020		48,000

In early January 2021, the following expenditures were incurred for repairs and maintenance:

Routine maintenance and repairs on the equipment	$	880
Major overhaul of the equipment		10,800

The equipment is being depreciated on a straight-line basis over an estimated life of 14 years, with a $4,300 estimated residual value. The companys fiscal year ends on December 31.

Required:

1. Calculate the depreciation expense for the manufacturing equipment for 2020.

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")

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".)

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.)

1 Record the payment for ordinary repairs incurred 2 Record the payment of extraordinary repairs incurred and capitalized. 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 + Accumulated depreciation II + Cash + Dec. 31, 2021 + Depreciation expense Equipment Repair expense