Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage value.

Question:

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. Paid $22,000 cash for a new component that increased the equipment’s productivity.
2. Paid $6,250 cash for minor repairs necessary to keep the equipment working well.
3. Paid $14,870 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

Question Posted: