Acc225 Fundamental of Accounting Principles: E10-15 Bera Company pays $282,750 for equipment

Acc225 Fundamental of Accounting Principles
E10-15
Bera Company pays $282,750 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. During the second year of the equipment's life, $29,150 cash is paid for a new component expected to increase the equipment's productivity by 10% a year.
2. During the third year, $7,288 cash is paid for normal repairs necessary to keep the equipment in good working order.
3. During the fourth year, $22,100 is paid for repairs expected to increase the useful life of the equipment from four to five years. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
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