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Manrow Growers, Inc., owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that are sold to local restaurants and grocery stores. At the beginning of 2016, an asset account for the company showed the following balances:

Manufacturing equipment	$	405,000
Accumulated depreciation through 2015		112,200

During 2016, the following expenditures were incurred for the equipment:

Routine maintenance and repairs on the equipment	$	5,000
Major overhaul of the equipment that improved efficiency on January 2, 2016		50,000

The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $31,000 estimated residual value. The annual accounting period ends on December 31.

12.

Required information

3. Prepare the journal entries to record the two expenditures during 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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