On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $61,200, has an nine-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufecturing equipment. On January 4, 2021, $15,150 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $3,400 represented ordinary repairs and annual maintenance and $11,750 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 11 years. Required: 1. Prepare journal entries for the depreciation for 2019 and 2020. 2. Prepare journal entries for the 2021 expenditure. 3. Prepare journal entries for the depreciation for 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries for the depreciation for 2019 and 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) cheet
On April 1, 2019, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $61,200, has an nine-year useful life, and has no residual value. The company uses the straight-line depreciation method for all manufecturing equipment. On January 4, 2021, $15,150 was spent to repair the equipment and to add a feature that increased its operating efficiency. Of the total expenditure, $3,400 represented ordinary repairs and annual maintenance and $11,750 represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the equipment was extended to 11 years. Required: 1. Prepare journal entries for the depreciation for 2019 and 2020. 2. Prepare journal entries for the 2021 expenditure. 3. Prepare journal entries for the depreciation for 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries for the depreciation for 2019 and 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) cheet
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 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT