Oki Company pays $264,000 for equipment expected to last four years and have a $29,000 salvage value. Prepare journal entries to record the following costs related to the equipment. 1. Paid $22,000 cash for a new component expected to increase the equipment's productivity. 2. Paid $6,250 cash for minor repairs necessary to keep the equipment working well. 3. Paid $14,870 cash for significant repairs to increase the useful life of the equipment from four to seven years. 1. Paid $22,000 cash for a new component expected to increase the equipment's productivity. General Journal Debit Credit 2. Paid $6,250 cash for minor repairs necessary to keep the equipment working well. General Journal Debit Credit 3. Paid $14,870 cash for significant repairs to increase the useful life of the equipment from four to seven years. General Journal Debit Credit Problem 7: Revenue Transactions