Exercise 8-14 Ordinary repairs, extraordinary repairs, and betterments LO C3 Oki Company pays $270.900 for equipment expected to last four years and have a $30,000 salvage value. Prepare journal entries to record the foilowing costs related to the equlpment. 1. During the second year of the equipment's life, $12.600 cash Is pald for a new component expected to Increase the equipment's productivity by 10% a year 2 During the third year, $3,150 cash is pald for normal repairs necessary to keep the equipment in good working order 3. During the fourth year, $5,550 IS pald for repairs expected to Increase the useful life of the equipment from four to five years. View transaction list Journal entry worksheet 2 Record the betterment cost of $12,600 paid in cash. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general jounal Oki Company pays $270,900 for equipment expected to last four years and have a $30,000 salvage valu record the following costs related to the equipment 1. During the second year of the equipment's life, $12,600 cash Is paid for a new component expected to productivity by 10% a year 2 During the third year, $3,150 cash is paid for normal repalrs necessary to keep the equipment in good w 3. During the fourth year, $5,550 IS paid for repairs expected to Increase the useful life of the equipment fr View transation list Journal entry worksheet nces 1 2 Record the cost of repairs of $5,550 paid in cash to increase the useful life of the equipment. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 Record entry Clear entry View general journal