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The heating system was replaced at a cost of $220,000. The cost of the old syste

ID: 2504076 • Letter: T

Question

  

The heating system was replaced at a cost of $220,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.

A new wing was added at a cost of $810,000. The new wing substantially increases the productive capacity of the plant.

All of the machinery on the assembly line in the plant was rearranged at a cost of $48,000. The rearrangement clearly increases the productive capacity of the plant.


Prepare journal entries to record each of the above expenditures. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)

Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:

Explanation / Answer

4.

All of the machinery on the assembly line in the plant was rearranged at a cost of $48,000. The rearrangement clearly increases the productive capacity of the plant. 100 ....correct