Refer to the information in E9-4.
In information Chapter 9 Exercise 4
Manufacturing equipment ................................. $160,000
Accumulated depreciation through 2012 ................. 100,000
During the first week of January 2013, the following expenditures were incurred for repairs and maintenance:
Routine maintenance and repairs on the equipment ................... $ 1,850
Major overhaul of the equipment that improved efficiency ........... 24,000
Required:
1. Give the adjusting journal entry that would have been made at the end of 2012 for depreciation on the manufacturing equipment.
2. Starting at the beginning of 2013, what is the remaining estimated life?
3. Give the journal entries to record the two expenditures for repairs and maintenance during 2013.