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Oki Company pays $293,750 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 $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Oki Company pays $293,750 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 $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oki Company pays $293,750 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 $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet < A B Record the cost of minor repairs of $5,000 paid in cash to keep the equipment working well. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit >
Transcribed Image Text:Oki Company pays $293,750 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 $5,000 cash for minor repairs necessary to keep the equipment working well. 2. Paid $12,950 cash for significant repairs to increase the useful life of the equipment from four to seven years. View transaction list Journal entry worksheet < A B Record the cost of minor repairs of $5,000 paid in cash to keep the equipment working well. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit >
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