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 >
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 76P
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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.
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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:
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
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