Mark's Repair Service uses the straight-line method of depreciation. The company's fiscal year end is December...

 

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Mark's Repair Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. Purchased equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250. 2021 July 1 Nov. 3 Incurred ordinary repairs on computer of $240. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $455. 2022 Dec. 31 Recorded 2022 depreciation. Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. Identify the accounts to be increased/decreased and the amount of the increase/decrease. Date Account Titles Increase/Decrease Amount 2021 July 1 $ 2021 Nov. 3 2$ 2$ 2021 Dec. 31 2$ $ 2022 Dec. 31 2$ 2$ 2023 Jan. 1 2$ | > > > > > |> Mark's Repair Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. Purchased equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250. 2021 July 1 Nov. 3 Incurred ordinary repairs on computer of $240. Dec. 31 Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $455. 2022 Dec. 31 Recorded 2022 depreciation. Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. 2023 Jan. Identify the accounts to be increased/decreased and the amount of the increase/decrease. Date Account Titles Increase/Decrease Amount 2021 July 1 $ 2021 Nov. 3 2$ 2$ 2021 Dec. 31 2$ $ 2022 Dec. 31 2$ 2$ 2023 Jan. 1 2$ | > > > > > |>

Answer rating: 100% (QA)

Solution Date Account Titles IncreaseDecrease Amount 2021 Equipm... View the full answer