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: No 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 -6 Part 1 $415,000 191,000 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. quired: repare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a saction/event, select "No journal entry required" in the first account field.) Transaction 1 Answer is complete but not entirely correct. General Journal Depreciation expense Accumulated depreciation, equipment $ 52,000 6,000 Debit 48,600 Credit 48,600 X
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: No 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 -6 Part 1 $415,000 191,000 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. quired: repare the adjusting entry that was made at the end of 2018 for depreciation on the equipment. (If no entry is required for a saction/event, select "No journal entry required" in the first account field.) Transaction 1 Answer is complete but not entirely correct. General Journal Depreciation expense Accumulated depreciation, equipment $ 52,000 6,000 Debit 48,600 Credit 48,600 X
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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:
No
1
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
$ 415,000
191,000
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.
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.)
Transaction
1
> Answer is complete but not entirely correct.
General Journal
Depreciation expense
Accumulated depreciation, equipment
$ 52,000
6,000
> >
Debit
48,600 X
Credit
48,600 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2F4b4855af-2b31-48b2-a327-e8988147106f%2Fjfoo3ow_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:
No
1
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
$ 415,000
191,000
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.
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.)
Transaction
1
> Answer is complete but not entirely correct.
General Journal
Depreciation expense
Accumulated depreciation, equipment
$ 52,000
6,000
> >
Debit
48,600 X
Credit
48,600 x
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