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Oki Company pays $265,400 for equipment expected to last four years and have a $30,000...

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Accounting

Oki Company pays $265,400 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the following costs related to the equipment.

  1. Paid $14,500 cash for a new component that increased the equipments productivity.
  2. Paid $3,625 cash for minor repairs necessary to keep the equipment working well.
  3. Paid $7,450 cash for significant repairs to increase the useful life of the equipment from four to seven years.

image Journal entry worksheet Record the betterment cost of $14,500 paid in cash. Note: Enter debits before credits

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