OkI Company pays $$264,000$ for equipment expected to last four years and have a $$29,000$ salvage value. Prepare

journal entrles to record the following costs related to the equipment.

Pald $$22,000$ cash for a new component that Increased the equipment's productlvity.

Pald $$6,250$ cash for minor repalrs necessary to keep the equipment working well.

Pald $$14,870$ cash for signlficant repalrs to Increase the useful life of the equipment from four to seven years.

Journal entry worksheet

B C

Record the betterment cost of $$22,000$ paid in cash.

Note: Enter debits before credits.

Journal entry worksheet

Record the cost of minor repairs of $$6,250$ paid in cash to keep the equipment

working well.

Note: Enter debits before credits

Journal entry worksheet

Record the cost of significant repairs of $$14,870$ paid in cash to increase the

useful life of the equipment.

Note: Enter debits before credits.