**Recording Depreciation and Repairs (Straight-Line Depreciation)****E8-7 (Algorithm) - LOB-2, 8-3***The following information applies to the questions displayed below:*Huime Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances:- **Manufacturing equipment**: $150,200- **Accumulated depreciation through 2019**: $48,300During 2020, the following expenditures were incurred for the equipment:1. **Major overhaul of the equipment** on January 2, 2020, that improved efficiency: **$15,000**2. **Routine maintenance and repairs on the equipment**: **$1,300**The equipment is being depreciated on a straight-line basis over an estimated life of 19 years with a $10,000 estimated residual value. The annual accounting period ends on December 31.**E8-7 Part 3****Required:**3. Prepare the journal entries to record the two expenditures during 2020. (*If no entry is required for a transaction/event, select "No journal entry required" in the first account field.*)Below is a table for the journal entries.**Journal Entry for Maintenance and Repairs:**| No | Transaction | General Journal | Debit | Credit ||-----|---------------------------------------------|-------------------------|--------|--------|| 1 | Accumulated depreciation, equipment | | | || 2 | Cash | | | |(**Note:** This part of the text is displayed in a user interface of an accounting software where the user is prompted to enter the journal entries based on the given transactions.)This document helps illustrate how Huime Company handles depreciation and equipment repair expenses, providing a practical scenario for educational purposes.

Name: **Recording Depreciation and Repairs (Straight-Line Depreciation)****
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Description: **Recording Depreciation and Repairs (Straight-Line Depreciation)****E8-7 (Algorithm) - LOB-2, 8-3***The following information applies to the questions displayed below:*Huime Company operates a small manufacturing facility as a supplement to its reg

Journal entries to record the two expenditures during 2020: No. General Journal Debit Credit 1.…

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E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 (The following information applies to the questions displayed below) Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Hanufacturing equipnent Accumulated depreciation through 2019 $ 150, 100 48, 300 During 2020, the following expenditures were incurred for the equipment Major overhaul of the equipment on January 2, 2800, that inproved efficiency Routine malntenance and repairs on the equipnent $ 15,000 1, 00 The equipment is being depreciated on a straight-ane basis over an estimated ife of 19 years with a $19.000 estimated residual value. The annual accounting period ends on December 31 E8-7 Part 3 Required: 3. Prepare the journal entries to record the two expenditures during 2020. (f no entry is required for a transaction/event, select "No journal entry required" in the first account field) Vew tansacttion t View journal ntry woksheet No Transaction General Journal Debi Credit Accumated depreon t Cash

E8-7 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 (The following information applies to the questions displayed below) Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances: Hanufacturing equipnent Accumulated depreciation through 2019 $ 150, 100 48, 300 During 2020, the following expenditures were incurred for the equipment Major overhaul of the equipment on January 2, 2800, that inproved efficiency Routine malntenance and repairs on the equipnent $ 15,000 1, 00 The equipment is being depreciated on a straight-ane basis over an estimated ife of 19 years with a $19.000 estimated residual value. The annual accounting period ends on December 31 E8-7 Part 3 Required: 3. Prepare the journal entries to record the two expenditures during 2020. (f no entry is required for a transaction/event, select "No journal entry required" in the first account field) Vew tansacttion t View journal ntry woksheet No Transaction General Journal Debi Credit Accumated depreon t Cash

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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