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3. Prepare the journal entries to record the two expenditures during 2019. (If no entry is required for a transaction/event, select " journal entry required" in the first account field.) View transaction list

3. Prepare the journal entries to record the two expenditures during 2019. (If no entry is required for a transaction/event, select " journal entry required" in the first account field.) View transaction list

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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### Educational Resource: Accounting for Equipment Expenditures **Context:** Manrow Growers, Inc., a company specializing in the sowing and harvesting of organic produce, owns equipment used in its operations. An asset account summary at the beginning of 2019 revealed key financial details related to this equipment. **Asset Summary:** - **Equipment Value:** $415,000 - **Accumulated Depreciation (through 2018):** $191,000 **2019 Expenditures:** During the year 2019, Manrow Growers, Inc. incurred specific expenditures related to their equipment: 1. **Major Overhaul:** - Date: January 1, 2019 - Purpose: Improve efficiency - Cost: $52,000 2. **Routine Maintenance and Repairs:** - Cost: $6,000 **Depreciation Method:** - The equipment is depreciated using the straight-line method. - **Estimated Life:** 10 years - **Estimated Residual Value:** $33,000 - **Annual Accounting Period:** Ends on December 31 **Required Task:** - **Prepare Journal Entries:** Record the two expenditures made in 2019. **Instructions for Journal Entry:** - Use the provided worksheet to enter the details of the expenditures. - If a transaction/event does not warrant a journal entry, select the option "No journal entry required." Interactive elements like buttons for viewing transaction lists and navigating worksheets are typically part of an online educational platform to assist in learning accounting practices.
Transcribed Image Text:### Educational Resource: Accounting for Equipment Expenditures **Context:** Manrow Growers, Inc., a company specializing in the sowing and harvesting of organic produce, owns equipment used in its operations. An asset account summary at the beginning of 2019 revealed key financial details related to this equipment. **Asset Summary:** - **Equipment Value:** $415,000 - **Accumulated Depreciation (through 2018):** $191,000 **2019 Expenditures:** During the year 2019, Manrow Growers, Inc. incurred specific expenditures related to their equipment: 1. **Major Overhaul:** - Date: January 1, 2019 - Purpose: Improve efficiency - Cost: $52,000 2. **Routine Maintenance and Repairs:** - Cost: $6,000 **Depreciation Method:** - The equipment is depreciated using the straight-line method. - **Estimated Life:** 10 years - **Estimated Residual Value:** $33,000 - **Annual Accounting Period:** Ends on December 31 **Required Task:** - **Prepare Journal Entries:** Record the two expenditures made in 2019. **Instructions for Journal Entry:** - Use the provided worksheet to enter the details of the expenditures. - If a transaction/event does not warrant a journal entry, select the option "No journal entry required." Interactive elements like buttons for viewing transaction lists and navigating worksheets are typically part of an online educational platform to assist in learning accounting practices.
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Journal entries in the books of Manrow Growers during the year 2019 as follows:-

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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