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Wiater Company operates a small manufacturing facility. On January 1, 2020, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation
Wiater Company operates a small manufacturing facility. On January 1, 2020, an asset account for the company showed the following balances: Manufacturing equipment Accumulated depreciation through 2019 $ 190,400 132,000 During the first week of January 2020, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $ 2,050 23,000 The equipment is being depreciated on a straight-line basis over an estimated life of fifteen years with a $10,400 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts) of the following two items on the accounting equation, using the schedule given below. (Enter any decreases to accounts with a minus sign.) 1. The adjustment for depreciation made at the end of 2019. 2. The two expenditures for repairs and maintenance during January 2020. 1. Item 2. Repairs and Maintenance 2. Major overhaul Assets Liabilities Shareholders' Equity
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