TracieLockman
New member
- Apr 30, 2011
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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
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