Reference no: EM133138823

Question - Oki Company pays $320,500 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 $18,050 cash for a new component that increased the equipment's productivity.

2. Paid $4,513 cash for minor repairs necessary to keep the equipment working well.

3. Paid $11,000 cash for significant repairs to Increase the useful lite of the equipment from four to seven years.

Record the betterment cost of $18,050 paid in cash.