Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment $ 231,000 Accumulated Depreciation (beginning of the year) 109,500 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $2,050 26,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $12.000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and+for increase and for decrease) of the following two items on the accounting equation using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020, 2. The two expenditures for repairs and maintenance during January 2021.
Wiater Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following balances: Equipment $ 231,000 Accumulated Depreciation (beginning of the year) 109,500 During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment Major overhaul of the equipment that improved efficiency $2,050 26,000 The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $12.000 estimated residual value. The annual accounting period ends on December 31. Required: Indicate the effects (accounts, amounts, and+for increase and for decrease) of the following two items on the accounting equation using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.) 1. The adjustment for depreciation made last year at the end of 2020, 2. The two expenditures for repairs and maintenance during January 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...
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![Wister Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following
balances:
Equipment
Accumulated Depreciation (beginning of the year)
During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:
Routine maintenance and repairs on the equipment
Major overhaul of the equipment that improved efficiency
The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $12.000 estimated residual
value. The annual accounting period ends on December 31.
Required:
Indicate the effects (accounts, amounts, and+for increase and for decrease) of the following two items on the accounting equation,
using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.)
1. The adjustment for depreciation made last year at the end of 2020.
2. The two expenditures for repairs and maintenance during January 2021.
Show Transcribed Text
$ 231,000
109,500
Item
2020
2021
2021
G
$2,050
26,000
Required:
Indicate the effects (accounts, amounts, and+for increase and - for decrease) of the following two items on the acc
using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus
Assets
C
1. The adjustment for depreciation made last year at the end of 2020.
2. The two expenditures for repairs and maintenance during January 2021.
Liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf4cd829-6c91-4b0c-b6e4-fb46150b5ddd%2Fae59d7a5-db08-447f-b0e6-15577c89f8af%2Fj91dz5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wister Company operates a small manufacturing facility. On January 1, 2021, an asset account for the company showed the following
balances:
Equipment
Accumulated Depreciation (beginning of the year)
During the first week of January 2021, the following cash expenditures were incurred for repairs and maintenance:
Routine maintenance and repairs on the equipment
Major overhaul of the equipment that improved efficiency
The equipment is being depreciated on a straight-line basis over an estimated life of 20 years with a $12.000 estimated residual
value. The annual accounting period ends on December 31.
Required:
Indicate the effects (accounts, amounts, and+for increase and for decrease) of the following two items on the accounting equation,
using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus sign.)
1. The adjustment for depreciation made last year at the end of 2020.
2. The two expenditures for repairs and maintenance during January 2021.
Show Transcribed Text
$ 231,000
109,500
Item
2020
2021
2021
G
$2,050
26,000
Required:
Indicate the effects (accounts, amounts, and+for increase and - for decrease) of the following two items on the acc
using the headings shown below. (Enter any decreases to Assets, Liabilities or Stockholder's Equity with a minus
Assets
C
1. The adjustment for depreciation made last year at the end of 2020.
2. The two expenditures for repairs and maintenance during January 2021.
Liabilities
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