Problem

Recording continuing expenditures for plant assetsBig Sky Inc. recorded the following tran...

Recording continuing expenditures for plant assets

Big Sky Inc. recorded the following transactions over the life of a piece of equipment purchased in 2011:

Jan. 1, 2011	Purchased the equipment for $36,000 cash. The equipment is estimated to have a five-year life and $6,000 salvage value and was to be depreciated using the straight-line method.
Dec. 31, 2011	Recorded depreciation expense for 2011.
May 5, 2012	Undertook routine repairs costing $750.
Dec. 31, 2012	Recorded depreciation expense for 2012.
Jan. 1, 2013	Made an adjustment costing $3,000 to the equipment. It improved the quality of the output but did not affect the life estimate.
Dec. 31, 2013	Recorded depreciation expense for 2013.
Mar. 1, 2014	Incurred $320 cost to oil and clean the equipment.
Dec. 31, 2014	Recorded depreciation expense for 2014.
Jan. 1, 2015	Had the equipment completely overhauled at a cost of $7,500. The overhaul was estimated to extend the total life to seven years and revised the salvage value to $4,000.
Dec. 31, 2015	Recorded depreciation expense for 2015.
July 1, 2016	Sold the equipment for $9,000 cash.

Required

a. Use a horizontal statements model like the following one to show the effects of these transactions on the elements of the financial statements. Use + for increase, − for decrease, and NA for not affected. The first event is recorded as an example.