ent Saved Exercise 8-14 Ordinary repairs, extraordinary repairs, and betterments LO C3 Oki Company pays $270,250 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. During the second year of the equipment's life, $28,900 cash is paid for a new component expected to increase the equipment's productivity by 10% a year. 2. During the third year, $7,225 cash is paid for normal repairs necessary to keep the equipment in good working order. 3. During the fourth year, $21,850 is paid for repairs expected to increase the useful life of the equipment from four to five years. View transaction list Journal entry worksheet