Vernon Manufacturing paid \(\$ 58,000\) to purchase a computerized assembly machine on January 1 , 2011. The machine had an estimated life of eight years and a \(\$ 2,000\) salvage value. Vernon's financial condition as of January 1, 2014, is shown in the following financial statements model. Vernon uses the straight-line method for depreciation.

Vernon Manufacturing made the following expenditures on the computerized assembly machine in 2014.

Required

a. Record the 2014 transactions in a statements model like the preceding one.

b. Prepare journal entries for the 2014 transactions.

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Assets = Equity Rev. - Exp. == Net Inc. Cash Flow Cash + Book Value of Mach. = Com. Stk. + Ret. Earn. 15,000 + 37,000 = 8,000 44,000 NA NA = NA NA