Oki Company pays $315,050 for equipment expected to last four years and have a $30,000...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Oki Company pays $315,050 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, $13,000 cash is paid for a new component expected to increase the equipment's productivity by 10% a year 2. During the third year, $3,250 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $5,950 is paid for repairs expected to increase the useful life of the equipment from four to five years. Journal entry worksheet 2 Record the betterment cost of $13,000 paid in cash Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 2 Record the cost of normal repairs of $3,250 paid in cash to keep the equipment in good working order. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 2 Record the cost of repairs of $5,950 paid in cash to increase the useful life of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
