Exercise 10-14 (Algo) Ordinary repairs, extraordinary repairs, and betterments LO C3

Oki Company pays $297,600 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 $28,400 cash for a new component that increased the equipments productivity. 2. Paid $7,100 cash for minor repairs necessary to keep the equipment working well. 3. Paid $21,350 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Journal entry worksheet Record the betterment cost of $28,400 paid in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet Record the cost of minor repairs of $7,100 paid in cash to keep the equipment working well. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 Record entry Clear entry View general journal Journal entry worksheet