Vernon Manufacturing paid $58,000 to purchase a computerized assembly machine on January 1, 2012. The machine had

Question:

Vernon Manufacturing paid $58,000 to purchase a computerized assembly machine on January 1, 2012. The machine had an estimated life of eight years and a $2,000 salvage value. Vernon's financial condition as of January 1, 2015, 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 2015.
Jan. 2 Added an overdrive mechanism for $6,000 that would improve the overall quality of the performance of the machine but would not extend its life. The salvage value was revised to $3,000.
Aug. 1 Performed routine maintenance, $1,150.
Oct. 2 Replaced some computer chips (considered routine), $950.
Dec. 31 Recognized 2015 depreciation expense.

Required
Record the 2015 transactions in a statements model like the precedingone.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...