Refer to the information in E9-4.

Data From E9-4

Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances:

During the first week of January 2018, the following expenditures were incurred for repairs and maintenance:

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.

Required:

1. Give the adjusting journal entry that would have been made at the end of 2017 for depreciation on the manufacturing equipment.
2. Starting at the beginning of 2018, what is the remaining estimated life?
3. Give the journal entries to record the two expenditures for repairs and maintenance during 2018.

Transcribed Image Text:

$ 1,850 Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency 24,000