Bird Manufacturing paid $62,000 to purchase a computerized assembly machine on January 1, 2013. The machine had an estimated life of eight years and a $2,000 salvage value. Bird’s financial condition as of January 1, 2016, is shown in the following financial statements model. Bird uses the straight-line method for depreciation.

Bird Manufacturing made the following expenditures on the computerized assembly machine in 2016:
Jan. 2 Added an overdrive mechanism for $8,000 that would improve the overall quality of the performance of the machine but would not extend its life. The salvage value was revised to $2,500.
Aug. 1 Performed routine maintenance, $1,250.
Oct. 2 Replaced some computer chips (considered routine), $800.
Dec. 31 Recognized 2016 depreciation expense.

Required
a. Record the 2016 transactions in a statements model like the preceding one.
b. Prepare journal entries for the 2016transactions.

Assets Equity Rev. - Exp. Net Inc.|Cash Flow Cash Book Value of Mach. Com. Stk Ret. Earn. 15,000 + 39,500 = 10,500 + 44,000| NA NA NA NA