E$9-5($Algo$)$ Determining Financial Statement Effects of Straight$-$Line Depreciation and Repairs $[$LO $9-2,$

LO $9-3]$

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

balances:

Equipment

$$280,90$

Accumulated Depreciation $($beginning of the year$)$

$130,9$

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

The equipment is beling depreclated on a stralght$-$line basis over an estimated life of $20$ years with a $$20,000$ estimated residual

value. The annual accounting perlod ends on December $31.$

Requlred:

Prepare the adjusting journal entry that would have been made at the end of $2020$ for depreclation 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 repalrs 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 of $2020$ for depreciation on the manufacturing equipment.

$($Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ 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.