Oki Company pays $$260,700$ for equipment expected to last four years and have a $$30,000$ salvage value. Prepare journal entries to record the following costs related to the equipment.

Paid $$14,350$ cash for a new component that increased the equipment's productivity.

Paid $$3,588$ cash for minor repairs necessary to keep the equipment working well.

Paid $$7,300$ 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 cost of significant repairs of $$7,300$ paid in cash to increase the useful life of the equipment.

Note: Enter debits before credits.

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