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On April $1,2022,$ the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment

cost $$53,600,$ has an eight$-$year useful life, and has no residual value. The company uses the straight$-$line depreciation

method for all manufacturing equipment.

On January $4,2024,$ $$14,250$ was spent to repair the equipment and to add a feature that increased its operating

efficiency. Of the total expenditure, $$2,500$ represented ordinary repairs and annual maintenance and $$11,750$

represented the cost of the new feature. In addition to increasing operating efficiency, the total useful life of the

equipment was extended to $10$ years.

Required:

Prepare journal entries for the depreciation for $2022$ and $2023.$

Prepare journal entry for the $2024$ expenditure. $[$Any capitalized amounts are recorded using Alternative $2-$

capitalization of new cost$].$

Prepare journal entry for the depreciation for $2024.$

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Prepare journal entries for the depreciation for $2022$ and $2023.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$12$

Record the depreciation expense for $2022.$

Note: Enter debits before credits.

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