Oki Company pays $265,400 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.

1. Paid $14,500 cash for a new component that increased the equipments productivity.
2. Paid $3,625 cash for minor repairs necessary to keep the equipment working well.
3. Paid $7,450 cash for significant repairs to increase the useful life of the equipment from four to seven years.

Journal entry worksheet Record the betterment cost of $14,500 paid in cash. Note: Enter debits before credits