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. 2016 July 1 Purchased equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250. Nov. 3 Incurred ordinary repairs on computer of $240. Dec. 31 Recorded 2016 depreciation on the basis of a four-year life and estimated salvage value of $455. 2017 Dec. 31 Recorded 2017 depreciation. 2018 Jan. Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. Identify the accounts to be increased/decreased and the amount of the increase/decrease. Date Account Titles Increase/Decrease Amount 2016 July 1 2016 Nov. 3 2016 Dec. 31 2017 Dec. 31 2018 Jan. 1 Click if you would like to Show Work for this question: Open Show Work 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. 2016 July 1 Purchased equipment from the Equipment Center for $5,500 cash plus sales tax of $305, and shipping costs of $250. Nov. 3 Incurred ordinary repairs on computer of $240. Dec. 31 Recorded 2016 depreciation on the basis of a four-year life and estimated salvage value of $455. 2017 Dec. 31 Recorded 2017 depreciation. 2018 Jan. Paid $1,800 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. Identify the accounts to be increased/decreased and the amount of the increase/decrease. Date Account Titles Increase/Decrease Amount 2016 July 1 2016 Nov. 3 2016 Dec. 31 2017 Dec. 31 2018 Jan. 1 Click if you would like to Show Work for this question: Open Show Work

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