Question

CO- O goVetermining rangiai avement Cirects Or vepreciation and repairs aur agnit-Line Depreciation) LO8-2, 8-3 Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2020, an asset account for the company showed the following balances acturing pent Molated depreciation thr 2013 5115.419 60,000 During 2020, the following expenditures were incurred for the equipment References Major overhaul of the equipment on January 2, 2020, that improved officia Routine maintenance and repairs on the point The equipment is being depreciated on a straight-ine basis over an estimated in of 16 years with a $13,000 estimated residual value The annual accounting period ends on December 31 Required: Indicate the effects of the following on the accounting equation (Enter decreases to account categories as negative amounts and do not round your intermediate calculations.) 1 The ajustment for depreciation at the end of 2019 2. The two expenditures during 2020 for the major overhaul of the equipment and (b) repairs and maintenance 1 2010 Accumulated deprec

Answer 1

D E F | н | = |Liabilities + | Stockholder's Equity Depreciation expense -6400 -6400 au w A 1 1) 2 Date Assets 2019 Accumulated depreciation ||(115400-13000)/16) 5 Date 2020 Assets Equipmnet Cash 9 10 b) Cash = Liabilities + Stockholder's Equity 1 20000 -20000 8 -800 | Repairs & maintenace exp. -800|