Required information E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Manrow Growers, Inc., 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 2019, an asset account for the company showed the following balances: Equipment Accumulated depreciation through 2018 During 2019, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 1, 2019, that improved efficiency Routine maintenance and repairs on the equipment E8-6 Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $33,000 estimated residual value. The annual accounting period ends on December 31. View transaction list Required: 1. Prepare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 $ 415,000 191,000 Record the adjusting entry for depreciation on the equipment during 2018. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit $ 52,000 6,000 View general journal >
Required information E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] Manrow Growers, Inc., 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 2019, an asset account for the company showed the following balances: Equipment Accumulated depreciation through 2018 During 2019, the following expenditures were incurred for the equipment: Major overhaul of the equipment on January 1, 2019, that improved efficiency Routine maintenance and repairs on the equipment E8-6 Part 1 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $33,000 estimated residual value. The annual accounting period ends on December 31. View transaction list Required: 1. Prepare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 $ 415,000 191,000 Record the adjusting entry for depreciation on the equipment during 2018. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit $ 52,000 6,000 View general journal >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
![!
Required information
E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
Manrow Growers, Inc., 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 2019, an asset account for the company showed the following
balances:
Equipment
Accumulated depreciation through 2018
During 2019, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on January 1, 2019, that improved efficiency
Routine maintenance and repairs on the equipment
E8-6 Part 1
The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $33,000 estimated
residual value. The annual accounting period ends on December 31.
View transaction list
Required:
1. Prepare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
< 1
$ 415,000
191,000
Record the adjusting entry for depreciation on the equipment during 2018.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
$ 52,000
6,000
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2F26b76db5-311b-4e4d-996c-436c242c2511%2Fjru6jpq_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
Manrow Growers, Inc., 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 2019, an asset account for the company showed the following
balances:
Equipment
Accumulated depreciation through 2018
During 2019, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on January 1, 2019, that improved efficiency
Routine maintenance and repairs on the equipment
E8-6 Part 1
The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $33,000 estimated
residual value. The annual accounting period ends on December 31.
View transaction list
Required:
1. Prepare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
< 1
$ 415,000
191,000
Record the adjusting entry for depreciation on the equipment during 2018.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
$ 52,000
6,000
Credit
View general journal
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education