Oki Company pays $ 264,000 for equipment expected to last four years and have a $ 29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. During the second year of the equipment’s life, $ 22,000 cash is paid for a new component expected to increase the equipment’s productivity by 10% a year. 2. During the third year, $ 6,250 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $ 14,870 is paid for repairs expected to increase the useful life of the equipment from four to five years.
Answer to relevant QuestionsDiaz Company owns a milling machine that cost $250,000 and has accumulated depreciation of $182,000. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent ...Refer to the statement of cash flows for Arctic Cat in Appendix A for the fiscal year ended March 31, 2011, to answer the following. 1. What amount of cash is used to purchase property and equipment? 2. How much depreciation ...Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business. 2012 Jan. 1 Paid $ 287,600 cash plus $ 11,500 in sales tax and $ 1,500 in transportation ...On January 2, Manning Co. purchases and installs a new machine costing $324,000 with a five-year life and an estimated $30,000 salvage value. Management estimates the machine will produce 1,470,000 units of product during ...Refer to KTM’s balance sheet in Appendix A. List KTM’s current liabilities as of December 31, 2011.
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