On april 1, 2014, the kb toy company purchased equipment to be used in its manufacturing process. the equipment cost $59,800, has an ten-year useful life, and has no residual value. the company uses the straight-line depreciation method for all manufacturing equipment. on january 4, 2016, $14,750 was spent to repair the equipment and to add a feature that increased its operating efficiency. of the total expenditure, $3,200 represented ordinary repairs and annual maintenance and $11,550 represented the cost of the new feature. in addition to increasing operating efficiency, the total useful life of the equipment was extended to 12 years.

1. prepare journal entries for the depreciation for 2014 and 2015.

2. prepare journal entries for the 2016 expenditure.

3. prepare journal entries for the depreciation for 2016.

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times