Exercise $8-14($Algo$)$ Ordinary repairs, extraordinary repairs, and betterments LO C$3$

Oki Company pays $$281,500$ for equipment expected to last four years and have a $$30,000$ salvage value. Prepare journal entries to record the following costs related to the equipment.

Paid $$29,750$ cash for a new component that increased the equipment's productivity.

Paid $$7,438$ cash for minor repairs necessary to keep the equipment working well.

Paid $$22,700$ cash for significant repairs to increase the useful life of the equipment from four to seven years.

Journal entry worksheet

A

B

C

Record the betterment cost of $$29,750$ paid in cash.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,]]$