Question: Bera company pays 264900 for equipment expected to last four

Bera Company pays $264,900 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, $29,500 cash is paid for a new component expected to increase the equipment’s productivity by 10% a year.
2. During the third year, $7,375 cash is paid for normal repairs necessary to keep the equipment in good working order.
3. During the fourth year, $22,450 is paid for repairs expected to increase the useful life of the equipment from four to five years.

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  • CreatedMarch 18, 2015
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