On January 1, 20X1, Lambda Corporation purchased a piece of machinery for $80,000 cash. The machinery has an estimated useful life of 8 years and a residual value of $5,000. Using the straight-line method, calculate the depreciation expense for the year 20X1.

Additionally, Lambda Corporation made the following transactions during 20X1:

• March 15: Paid $3,000 for machinery repairs.
• June 1: Purchased additional machinery parts for $6,000.
• September 1: Paid $2,500 for machinery maintenance services.

Required:

• Calculate the total depreciation expense for the year 20X1 for the machinery.
• Prepare the journal entries to record the machinery-related transactions for Lambda Corporation during the year 20X1.