Question

Wiater Company operates a small manufacturing facility. On January 1, 2018, an asset account for the company showed the following balances: Equipment $ 160,000 Accumulated Depreciation (beginning of the year) 100,000 During the first week of January 2018, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment $ 1,850 Major overhaul of the equipment that improved efficiency 24,000 The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on December 31.

Answer 1

1
	Debit	Credit
Depreciation expense	10000		=(160000-10,000)/15
Accumulated Depreciation-Equipment		10000
2
Years of use	10		=100000/10000
Remaining estimated life	5	years	=15-10
3
	Debit	Credit
Repairs and Maintenance expense	1,850
Cash		1,850
Equipment	24,000
Cash		24,000

Kindly give me a ?.It helps me. Thanks!!