Question

Oki Company pays $262,100 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. During the second year of the equipment's life, $15,300 cash is paid for a new component expected to increase the equipment's productivity by 10% a year. 2. During the third year, $3,825 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $8,250 is paid for repairs expected to increase the useful life of the equipment from four to five years. View transaction list Journal entry worksheet 2 3 Record the betterment cost of $15,300 paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Transaction	General Journal	Debit	Credit
1	Equipment	15300
	cash		15300
2	Repair expense	3825
	cash		3825
3	Equipment	8250
	cash		8250