Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Date of purchase Jan. 12/18 Blade Jan. 12/18 Jan. 12/18 Depreciation Method* SL DDB Est. SL Cost $ 68,000 28,000 8,920 $104,920 Residual Est.Life $ 8,000 6,000 1,600 15 yrs 10 yrs 5 yrs *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $14,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $2,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $10,500. Required: 1. Prepare the entry to record the purchase of the replacement blade. Answer is complete and correct. No 1 Date Jan 07, 2020 General Journal Machine #5027-blade (new) Cash N 2 Jan 07, 2020 Accumulated depreciation, machine #5027 -blade Loss on disposal Machine #5027-blade (old) 000 00 Debit Credit 14,200 14,200 2,928 5,992 8,920 Pete's Propellers Company showed the following information in its Property, Plant, and Equipment Subledger regarding Machine #5027. Machine #5027 Component Single metal housing Motor Date of purchase Jan. 12/18 Blade Jan. 12/18 Jan. 12/18 Depreciation Method* SL DDB Est. SL Cost $ 68,000 28,000 8,920 $104,920 Residual Est.Life $ 8,000 6,000 1,600 15 yrs 10 yrs 5 yrs *SL = Straight-line; DDB = Double-declining-balance On January 7, 2020, the machine blade cracked and it was replaced with a new one costing $14,200 purchased for cash (the old blade was scrapped). The new blade had an estimated residual value of $2,000 and an estimated life of five years and would continue to be depreciated using the straight-line method. During 2020, it was determined that the useful life on the metal housing should be increased to a total of 20 years instead of 15 years and that the residual value should be increased to $10,500. Required: 1. Prepare the entry to record the purchase of the replacement blade. Answer is complete and correct. No 1 Date Jan 07, 2020 General Journal Machine #5027-blade (new) Cash N 2 Jan 07, 2020 Accumulated depreciation, machine #5027 -blade Loss on disposal Machine #5027-blade (old) 000 00 Debit Credit 14,200 14,200 2,928 5,992 8,920