Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the
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Question:
Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of the current year, an asset account for the company showed the following balances:
Manufacturing equipment | $ 126,000 |
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Accumulated depreciation through the end of last year | 58,400 |
During the current year, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on January 2the current year that improved efficiency | $ 23,100 |
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Routine repairs on the equipment | 2,300 |
The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $16,500 estimated residual value. The annual accounting period ends on December 31.
Required:
Prepare the adjusting entry that should be made by Hulme Company at the end of the current year for depreciation of the manufacturing equipment, assuming no change in the original estimated life or residual value.
Posted Date: