Ask Question
21 May, 17:54

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

1. The heating system was replaced at a cost of $250,000. The cost of the old system was not known. The company accounts for improvements as reductions of accumulated depreciation.

2. A new wing was added at a cost of $750,000. The new wing substantially increases the productive capacity of the plant.

3. Annual building maintenance was performed at a cost of $14,000.

4. All of the equipment on the assembly line in the plant was rearranged at a cost of $50,000. The rearrangement clearly increases the productive capacity of the plant.

Prepare journal entries to record each of the above expenditures.

+2
Answers (1)
  1. 21 May, 18:02
    0
    The journal entries are as follows:

    (1) Accumulated depreciation - Building A/c Dr. $250,000

    To Cash $250,000

    (To record the replacement of heating system)

    (2) Building A/c Dr. $750,000

    To cash $750,000

    (To record the new wing)

    (3) Maintenance expense A/c Dr. $14,000

    To cash $14,000

    (To record the maintenance expense)

    (4) Equipment A/c Dr. $50,000

    To cash $50,000

    (To record the new equipment)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Belltone Company made the following expenditures related to its 10-year-old manufacturing facility: 1. The heating system was replaced at a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers