Johnstone Company just bought a machine for $ 6,000, with an estimated life of five years and

Question:

Johnstone Company just bought a machine for $ 6,000, with an estimated life of five years and an estimated of $ 2,000; straight-line depreciation expense is $ 800. Record journal entries for the following transactions:
Jan. 12 Issued Ck. No. 1832 for $ 525 for inspection and lubrication of the machine.
Oct. 15 Issued Ck. No. 1876 for $ 2,120 to replace the motor and rollers. Johnstone Company estimates that this repair will extend the life of the machine about two years.

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...