Journal entry worksheet

Exercise 8-14 Ordinary repairs, extraordinary repairs, and betterments LO C3 050 for equipment expected to last four years and have a $30,000 salvage Oki Company pays $299, value. Prepare journal entries to record the following costs related to the equipment. During the second year of the equipment's lif, $23,450 cash is paid for a new component expected to increase the equipment's productivity by 10% a year During the third year, $5,863 cash is paid for normal repairs necessary to keep the equipment in good working order During the fourth year, $16,400 is paid for repairs expected to increase the useful life of the equipment from four to five years