Instead of repairing the heavy duty shop hoist at a cost of $1656 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). The overhaul will extend the useful life of the hoist to four years. The Shop Equipment account will be debited directly for this extraordinary repair.
Can someone help me with this journal entry please?
Can someone help me with this journal entry please?