Oki Company pays $283,500 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 $20,250 cash for a new component that increased the equipment's productivity. 2. Paid $5,063 cash for minor repairs necessary to keep the equipment working well. 3. Paid $13,200 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Oki Company pays $283,500 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 $20,250 cash for a new component that increased the equipment's productivity. 2. Paid $5,063 cash for minor repairs necessary to keep the equipment working well. 3. Paid $13,200 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...
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![Oki Company pays $283,500 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 $20,250 cash for a new component that increased the equipment's productivity.
2. Paid $5,063 cash for minor repairs necessary to keep the equipment working well.
3. Paid $13,200 cash for significant repairs to increase the useful life of the equipment from four to seven years.
View transaction list
Journal entry worksheet
>
Record the betterment cost of $20,250 paid in cash.
Note: Enter debits before credits.
Debit
Credit
Transaction
General Journal
1
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Transcribed Image Text:Oki Company pays $283,500 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 $20,250 cash for a new component that increased the equipment's productivity.
2. Paid $5,063 cash for minor repairs necessary to keep the equipment working well.
3. Paid $13,200 cash for significant repairs to increase the useful life of the equipment from four to seven years.
View transaction list
Journal entry worksheet
>
Record the betterment cost of $20,250 paid in cash.
Note: Enter debits before credits.
Debit
Credit
Transaction
General Journal
1
< Prev
6 of 7
Next >
MacBook Air
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