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Wiater Company operates a small manufacturing facility. On January 1 , 2 0 2 1 , an asset account for the company showed the following

Wiater Company operates a small manufacturing facility. On January 1,2021, an asset account for the company showed the following
balances:
Equipment
Accumulated Depreciation (beginning of the year)
$324,000
149,000
During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:
Routine maintenance and repairs on the equipment
$3,450
Major overhaul of the equipment that improved efficiency
40,000
The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $26,000 estimated residual
value. The annual accounting period ends on December 31.
Required:
Prepare the adjusting journal entry that would have been made at the end of 2020 for depreciation on the manufacturing
equipment.
Starting at the beginning of 2021, what is the remaining estimated life?
Prepare the journal entries to record the two expenditures for repairs and maintenance during 2021.
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