Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine...

 

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Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Date of Depreciation purchase Est. Method* Single metal housing Motor Jan. 12/18 Jan. 12/18 SL DDB Blade Jan. 12/18 SL Cost $50,000 33,000 12,000 $ 95,000 Residual Est. Life $8,000 15 yrs 4,000 10 yrs 1,200 5 yrs = *SL Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,800 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $9,300. Required: 1. Prepare the entry to record the purchase of the replacement blade. Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Date of Depreciation purchase Est. Method* Single metal housing Motor Jan. 12/18 Jan. 12/18 SL DDB Blade Jan. 12/18 SL Cost $50,000 33,000 12,000 $ 95,000 Residual Est. Life $8,000 15 yrs 4,000 10 yrs 1,200 5 yrs = *SL Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $11,800 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $1,500 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $9,300. Required: 1. Prepare the entry to record the purchase of the replacement blade.