(Solved by Humans)-Problem 6-31 Accounting for continuing expenditures Vernon Manufacturing paid $58,000 to purchase...

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Problem 6-31      Accounting for continuing expenditures 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. Assets                                   5                         Equity Rev.       2       Exp.        5       Net Inc.   Cash Flow   Cash       1       Mach.        2       Acc. Dep.       5       Com. Stk.         1       Ret. Earn.       15,000     1       58,000     2          21,000       5           8,000        1          44,000 NA     2        NA      5           NA NA     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.   Required Record the 2015 transactions in a statements model like the preceding one.