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Carla Vista'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. 2021 July 1 Nov. 3 Dec. 31 2022 Dec. 31 Recorded 2022 depreciation. 2023 Jan. 1 Date Purchased equipment from the Equipment Center for $5,100 cash plus sales tax of $330, and shipping costs of $390. Incurred ordinary repairs on computer of $370. Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $660. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) + + Paid $3,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. Account Titles and Explanation Debit Credit

Carla Vista'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. 2021 July 1 Nov. 3 Dec. 31 2022 Dec. 31 Recorded 2022 depreciation. 2023 Jan. 1 Date Purchased equipment from the Equipment Center for $5,100 cash plus sales tax of $330, and shipping costs of $390. Incurred ordinary repairs on computer of $370. Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $660. Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) + + Paid $3,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. Account Titles and Explanation Debit Credit

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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Carla Vista'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. 2021 July 1 Nov. 3 Dec. 31 2022 Dec. 31 2023 Jan. 1 Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Purchased equipment from the Equipment Center for $5,100 cash plus sales tax of $330, and shipping costs of $390. Incurred ordinary repairs on computer of $370. Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $660. Recorded 2022 depreciation. Paid $3,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. + Account Titles and Explanation Debit Credit
Transcribed Image Text:Carla Vista'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. 2021 July 1 Nov. 3 Dec. 31 2022 Dec. 31 2023 Jan. 1 Prepare the necessary entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Purchased equipment from the Equipment Center for $5,100 cash plus sales tax of $330, and shipping costs of $390. Incurred ordinary repairs on computer of $370. Recorded 2021 depreciation on the basis of a four-year life and estimated salvage value of $660. Recorded 2022 depreciation. Paid $3,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment. + Account Titles and Explanation Debit Credit
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