Wiater Company operates a small manufacturing facility. On Jan. 1,2010, an asset account for the company showed the following balances:
- Manufacturing equipment $160,000
- Accumulated depreciation through2009 $110,000
- During the first week of Jan 2010, the following expenditures were incurred for repairs and maintenance:
- Routine Maintenance and repairs on the equipment $1850
- Major overhaul of the equipment that improved efficiency $21,000
The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $10,000 estimated residual value. The annual accounting period ends on Dec. 31. Indicate the effectsof the following two items on the accounting equation, using the headings shown below. 1) The adjusments for depreciation made at the end of 2009.The two expenditures for repairs and maintenace during January 2010.Item Assets + Liabilities + Stockholders' Equity.