$E9-5(Algo)$ Determining Financial Statement Effects $of$ Straight$-$Line Depreciation and Repairs $[LO9-2,LO9-3]$

Wiater Company operates a small manufacturing facility. $On$ January $1,2021,an$ asset account for the company showed the following balances:$\frac{?}{\frac{?}{\text{b}\text{e}\text{g}\text{i}\text{n}\{array\}}\frac{ll}{t}\text{e}\text{x}\text{t}\{\text{E}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}\}\text{\&}\frac{?}{?}\text{\$}331,000\frac{\frac{?}{?}}{\frac{?}{?}}\text{t}\text{e}\text{x}\text{t}\{\text{A}\text{c}\text{c}\text{u}\text{m}\text{u}\text{l}\text{a}\text{t}\text{e}\text{d}\text{D}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}(beginningof\text{t}\text{h}\text{e}\text{y}\text{e}\text{a}\text{r})\}\frac{\frac{?}{?}}{229},\frac{500}{e}nd\{array\}\frac{?}{?}}$

During the first week $of$ January $2021,$ the following cash expenditures were incurred for repairs and maintenance:

$```$

Routine maintenance and repairs $on$ the equipment

Major overhaul $of$ the equipment that improved efficiency

$ $3,350$

$39,000$

$```$

The equipment $is$ being depreciated $on$ a straight$-$line basis over $an$ estimated life $of20$ years with $a\frac{?}{?}$$$25,000$ estimated residual value. The annual accounting period ends $on$ December $31.$

Required:

$1.$ Prepare the adjusting journal entry that would have been made $at$ the end $of2020$ for depreciation $on$ the manufacturing equipment.

$2.$ Starting $at$ the beginning $of2021,$ what $is$ the remaining estimated life?

$3.$ Prepare the journal entries $to$ record the two expenditures for repairs and maintenance during $2021.$

Complete this question $by$ entering your answers $in$ the $tabs$ below.

Prepare the adjusting journal entry that would have been made $at$ the end $of2020$ for depreciation $on$ the manufacturing equipment. $(Do$ not round intermediate calculations. $Ifno$ entry $is$ required for a transactio$\frac{n}{e}$vent, select $"No$ Journal Entry Required" $in$ the first account field.$)$

Journal entry worksheet

$A$

Record the adjusting entry for depreciation expense $at$ year$-$end $2020.$

Note: Enter debits before credits.

$E9-5(Algo)$ Determining Financial Statement Effects $of$ Straight$-$Line Depreciation and Repairs $[LO9-2,$

$LO9-3]$

Wiater Company operates a small manufacturing facility. $On$ January $1,2021,an$ asset account for the company showed the following

balances:

During the first week $of$ January $2021,$ the following cash expenditures were incurred for repairs and maintenance:

The equipment $is$ being depreciated $on$ a straight$-$line basis over $an$ estimated life $of20$ years with $a$ $$25,000$ 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 $of2020$ for depreciation $on$ the manufacturing

equipment.

Starting $at$ the beginning $of2021,$ what $is$ the remaining estimated life?

Prepare the journal entries $to$ record the two expenditures for repairs and maintenance during $2021.$

Complete this question $by$ entering your answers $in$ the $tabs$ below.

Starting $at$ the beginning $of2021,$ what $is$ the remaining estimated life?

$E9-5(Algo)$ Determining Financial Statement Effects $of$ Straight$-$Line Depreciation and Repairs $[LO9-2,$

$LO9-3]$

Wiater Company operates a small manufacturing facility. $On$ January $1,2021,an$ asset account for the company showed the following

balances:

During the first week $of$ January $2021,$ the following cash expenditures were incurred for repairs and maintenance:

The equipment $is$ being depreciated $on$ a straight$-$line basis over $an$ estimated life $of20$ years with $a$ $$25,000$ 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 $of2020$ for depreciation $on$ the manufacturing

equipment.

Starting $at$ the beginning $of2021,$ what $is$ the remaining estimated life?

Prepare the journal entries $to$ record the two expenditures for repairs and maintenance during $2021.$

Complete this question $by$ entering your answers $in$ the $tabs$ below.

Prepare the journal entries $to$ record the two expenditures for repairs and maintenance during $2021.(Ifno$ entry $is$ required for $a$

transactio$\frac{n}{e}$vent, select $"No$ Journal Entry Required" $in$ the first account field.$)$

Journal entry worksheet

Record the expenditure for ordinary repairs incurred.

Note: Enter debits before credits.

$LO9-3$ Routine maintenance and repairs $on$ the equipment $$3,350$

Major overhaul $of$ the equipment that improved efficiency $39,000$