Stumped on this entry.....Instead of repairing the heavy duty shop hoist at a cost of $1,656 and charging this cost to an operating expense account, the hoist, which has one year remaining in its estimated useful life, is completely overhauled at a cost of $3,600 (check 30094, invoice number 35556). This overhaul will extend the useful life of the hoist to four years. The Shop Equipment account will be debited directly for this extraordinary repair.What is the journal entry??Thank you :)
December 13 Instead of repairing the heavy duty shop hoist at a cost of $1,656 and charging this cost to an operating expense account, the hoist, which has one year remaining in its estimated useful life, is completely overhauled at a cost of $3,600 (check 30094, invoice number 35556). This overhaul will extend the useful life of the hoist to four years. The Shop Equipment account will be debited directly for this extraordinary repair. Journal entry would be debit- Shop Equipment (135) for 3,600.00 Credit- Cash(101) for 3,600.00 Check: 30094 Invoice: 35556
you're able to calculate the the remainder of the accum depreciation (they only provide you thro sept) and then when you cal the accum depr in simple terms calculate despite if or no longer to procure a benefit or loss from promoting the kit
