Oki Company pays $267,100 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 $12,100 cash for a new component that increased the equipments productivity.
2. Paid $3,025 cash for minor repairs necessary to keep the equipment working well.
3. Paid $5,050 cash for significant repairs to increase the useful life of the equipment from four to seven years.

View transaction list Journal entry worksheet