Oki Company pays $312,150 for equipment expected to last four years and have a $30,000 salvage value.
Fantastic news! We've Found the answer you've been seeking!
Question:
Oki Company pays $312,150 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.
- Paid $15,650 cash for a new component that increased the equipment’s productivity.
- Paid $3,913 cash for minor repairs necessary to keep the equipment working well.
- Paid $8,600 cash for significant repairs to increase the useful life of the equipment from four to seven years.
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date: