Oki Company pays $292,150 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal er record the following costs related to the equipment. 1. Paid $17,600 cash for a new component that increased the equipment's productivity. 2. Paid $4,400 cash for minor repairs necessary to keep the equipment working well. 3. Paid $10,550 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Oki Company pays $292,150 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal er record the following costs related to the equipment. 1. Paid $17,600 cash for a new component that increased the equipment's productivity. 2. Paid $4,400 cash for minor repairs necessary to keep the equipment working well. 3. Paid $10,550 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Oki Company pays $292,150 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 $17,600 cash for a new component that increased the equipment's productivity.
2. Paid $4,400 cash for minor repairs necessary to keep the equipment working well.
3. Paid $10,550 cash for significant repairs to increase the useful life of the equipment from four to seven years.
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Journal entry worksheet
<
A B
Record the betterment cost of $17,600 paid in cash.
с
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
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