Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts the are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed the following balances: Equipment Accumulated depreciation through the end of last year During the current year, the following expenditures were incurred for the equipment: $ 384,000 86,750 Major overhaul of the equipment on January 1 of the current year that improved efficiency Routine maintenance and repairs on the equipment E8-6 Part 3 $ 56,000 8,000 The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $37,000 estimate- residual value. The annual accounting period ends on December 31, 3. Prepare the journal entries to record the two expenditures during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts the are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed the following balances: Equipment Accumulated depreciation through the end of last year During the current year, the following expenditures were incurred for the equipment: $ 384,000 86,750 Major overhaul of the equipment on January 1 of the current year that improved efficiency Routine maintenance and repairs on the equipment E8-6 Part 3 $ 56,000 8,000 The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $37,000 estimate- residual value. The annual accounting period ends on December 31, 3. Prepare the journal entries to record the two expenditures during the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Manrow Growers, Incorporated, owns equipment for sowing and harvesting its organic fruit, vegetables, and tree nuts that
are sold to local restaurants and grocery stores. At the beginning of this year, an asset account for the company showed
the following balances:
Equipment
Accumulated depreciation through the end of last year
During the current year, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on January 1 of the current year that improved
efficiency
Routine maintenance and repairs on the equipment
The equipment is being depreciated on a straight-line basis over an estimated life of eight years with a $37,000 estimated
residual value. The annual accounting period ends on December 31.
View transaction list
E8-6 Part 3
3. Prepare the journal entries to record the two expenditures during the current year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
< 1
Record the expenditure for the major overhaul of the equipment.
Note: Enter debits before credits.
Transaction
Record entry
$384,000
86,750
General Journal
Clear entry
Debit
$ 56,000
8,000
Credit
View general Journal
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