Delta Manufacturing paid $62,000 to purchase a computerized assembly machine on January 1, Year 1. The machine had an estimated life of eight years and a $2,000 salvage value. Delta’s financial condition as of January 1, Year 4, is shown in the following financial statements model. Delta uses the straight-line method for depreciation.

Delta Manufacturing made the following expenditures on the computerized assembly machine in Year 4:
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 Year 4 depreciation expense.

Required
Record the Year 4 transactions in a statements model like the preceding one.

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Balance Sheet Income Statement Statement of Cash Flows Stk. Equlty Assets Cash Book Value of Mach. Com. Stk. Ret. Earn. Exp. Net Inc. Rev. 10,500 NA 15,000 39,500 44,000 NA - NA = NA