Question

Required information (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 $ 410,000 151,200 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 $ 51,000 5,500 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $32,000 estimated residual value. The annual accounting period ends on December 31. 3. Prepare the journal entries to record the two expenditures during 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the expenditure for the major overhaul of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Journal entry

No	Account and explanation	Debit	Credit
1	Equipment	51000
	Cash		51000
	(To record major overhaul)

Journal entry

No	Account and explanation	Debit	Credit
2	Repairs expense	5500
	Cash		5500
	(To record repairs)