FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Okl Company pays $283,000 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.
1. Paid $14,150 cash for a new component that increased the equipment's productivity.
2. Paid $3,538 cash for minor repairs necessary to keep the equipment working well.
3. Paid $7,100 cash for significant repairs to increase the useful life of the equipment from four
View transaction list
Journal entry worksheet
<
A в с
Record the betterment cost of $14,150 paid in cash.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal
>
seven years.
Journal entry worksheet
<A B C
Record the cost of minor repairs of $3,538 paid in cash to keep the equipment
working well.
Note: Enter debits before credits.
Transaction
2
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Journal entry worksheet
<ABC
Record the cost of significant repairs of $7,100 paid in cash to increase the
useful life of the equipment.
Note: Enter debits before credits.
Transaction
3
Record entry
General Journal
Clear entry
Debit
Credit
View general Journal
expand button
Transcribed Image Text:Okl Company pays $283,000 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. 1. Paid $14,150 cash for a new component that increased the equipment's productivity. 2. Paid $3,538 cash for minor repairs necessary to keep the equipment working well. 3. Paid $7,100 cash for significant repairs to increase the useful life of the equipment from four View transaction list Journal entry worksheet < A в с Record the betterment cost of $14,150 paid in cash. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general Journal > seven years. Journal entry worksheet <A B C Record the cost of minor repairs of $3,538 paid in cash to keep the equipment working well. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal > Journal entry worksheet <ABC Record the cost of significant repairs of $7,100 paid in cash to increase the useful life of the equipment. Note: Enter debits before credits. Transaction 3 Record entry General Journal Clear entry Debit Credit View general Journal
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