-there are three journal entries; one depreciation expense, one for the small repair, one for the major repair - record the effects for each entry

194 Recording Stralght-Line Depreciation and Repairs Page 429 LO 9-2, 9-3 Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment $160,000 Accumulated Depreciation (beginning of year) 100,000 During the first week of January 2021, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 1,850 24,000 Major overhaul of the equipment that improved efficiency The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31. Refer to the information in E94. Required: 1. Give the adjusting journal entry that would have been made at the end of 2020 for depreciation on the manufacturing equipment. 2. Starting at the beginning of 2021, what is the remaining estimated life? 3. Give the journal entries to record the two expenditures for repairs and maintenance during 2021