Vernon Manufacturing paid $58,000 to purchase a computerized assembly machine on January 1, 2012. The machine had an estimated life of eight years and a $2,000 salvage value. Vernon’s financial condition as of January 1, 2015, is shown in the following financial statements model. Vernon uses the straight-line method for depreciation.Vernon Manufacturing made the following expenditures on the computerized assembly machine in 2015.Jan. 2 Added an overdrive mechanism for $6,000 that would improve the overall quality of the performance of the machine but would not extend its life. The salvage value was revised to $3,000.Aug. 1 Performed routine maintenance, $1,150.Oct. 2 Replaced some computer chips (considered routine), $950.Dec. 31 Recognized 2015 depreciation expense.RequiredRecord the 2015 transactions in a statements model like the precedingone.
Vernon Manufacturing paid 58 000 to purchase a computerized ass