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Problem 8-32A (Algo) Recording continuing expenditures for plant assets LO 8-2, 8-8 Morris Incorporated recorded the following transactior's over the life of a piece of equipment purchased in Year 1 January 1, Year 1 Purchased equipment for $104,000 cash. The equipment was estinuted to have a flve-year life and $3, 00e salvag value and was to be depreciated using the straight-1ine method. December 31, Year 1 fecorded depreciation expense for Year 1. Septeaber 30, Year 2 Undertook routine repairs costing $990. Decenber 31 , Year 2 Aecorded depreciation expense for Year 2. January 1, Year 3 Made an adjustment costing $2,100 to the equipnent. It improved the quality of the output but did not offect the life and solvage value estinates. Decenber 31 , Year 3 Recorded depreciation expense for Year 3. June 1, Year 4 Incurred $2,250 cost to oil and clean the equipsent. Decenber 31, Year 4 Recarded depreciation expense for Year 4 . January 1, year 5 Had the equipment completely overhauled at a cost of 511,800 . The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Deceaber 31, Year 5 Recorded depreciation expense foe Year 5 . october 1 , Year 6 Received and accepted an offer of $33,000 for the equipment. Required a. Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. Use + for increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affected. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of each year for Year 1 through Year 6 . d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6 . e. Prepare the journal entry for the disposal of the equipment on October 1 , Year 6 . Complete this question by entering your answers in the tabs below. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . (Round your answers to the nearest dollar amount.) December 31, Year 5 Recorded depreciation expense for Year 5. October 1, Year 6 Received and accepted an offer of $33,000 for the equipment. Required a. Use a horizontal statements model to show the effects of these transactions on the eleme increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affec example. b. Determine the amount of depreciation expense to be reported on the income statements c. Determine the book value (cost - accumulated depreciation) Morris will report on the balar Year 1 through Year 6. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipmer e. Prepare the journal entry for the disposal of the equipment on October 1, Year 6 . Complete this question by entering your answers in the tabs below. Determine the book value (cost - accumulated depreciation) Morris will report on the balance shee for Year 1 through Year 6. (Round your answers to the nearest dollar amount.) Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . (Round intermediate calculations and final answer to nearest dollar amount.) Prepare the journal entry for the disposal of the equipment on October 1 , Year 6 . (If no entry is required for "No journal entry required" in the first account field.) Journal entry worksheet Record entry for disposal of the equipment on October 1, Year 6. Note: Enter debits before credits. Problem 8-32A (Algo) Recording continuing expenditures for plant assets LO 8-2, 8-8 Morris Incorporated recorded the following transactior's over the life of a piece of equipment purchased in Year 1 January 1, Year 1 Purchased equipment for $104,000 cash. The equipment was estinuted to have a flve-year life and $3, 00e salvag value and was to be depreciated using the straight-1ine method. December 31, Year 1 fecorded depreciation expense for Year 1. Septeaber 30, Year 2 Undertook routine repairs costing $990. Decenber 31 , Year 2 Aecorded depreciation expense for Year 2. January 1, Year 3 Made an adjustment costing $2,100 to the equipnent. It improved the quality of the output but did not offect the life and solvage value estinates. Decenber 31 , Year 3 Recorded depreciation expense for Year 3. June 1, Year 4 Incurred $2,250 cost to oil and clean the equipsent. Decenber 31, Year 4 Recarded depreciation expense for Year 4 . January 1, year 5 Had the equipment completely overhauled at a cost of 511,800 . The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Deceaber 31, Year 5 Recorded depreciation expense foe Year 5 . october 1 , Year 6 Received and accepted an offer of $33,000 for the equipment. Required a. Use a horizontal statements model to show the effects of these transactions on the elements of the financial statements. Use + for increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affected. The first event is recorded as an example. b. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of each year for Year 1 through Year 6 . d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, Year 6 . e. Prepare the journal entry for the disposal of the equipment on October 1 , Year 6 . Complete this question by entering your answers in the tabs below. Determine the amount of depreciation expense to be reported on the income statements for Year 1 through Year 6 . (Round your answers to the nearest dollar amount.) December 31, Year 5 Recorded depreciation expense for Year 5. October 1, Year 6 Received and accepted an offer of $33,000 for the equipment. Required a. Use a horizontal statements model to show the effects of these transactions on the eleme increase, - for decrease, +1 - for both increase and decrease, and leave blank for not affec example. b. Determine the amount of depreciation expense to be reported on the income statements c. Determine the book value (cost - accumulated depreciation) Morris will report on the balar Year 1 through Year 6. d. Determine the amount of the gain or loss Morris will report on the disposal of the equipmer e. Prepare the journal entry for the disposal of the equipment on October 1, Year 6 . Complete this question by entering your answers in the tabs below. Determine the book value (cost - accumulated depreciation) Morris will report on the balance shee for Year 1 through Year 6. (Round your answers to the nearest dollar amount.) Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1 , Year 6 . (Round intermediate calculations and final answer to nearest dollar amount.) Prepare the journal entry for the disposal of the equipment on October 1 , Year 6 . (If no entry is required for "No journal entry required" in the first account field.) Journal entry worksheet Record entry for disposal of the equipment on October 1, Year 6. Note: Enter debits before credits

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