Question

Belltone Company made the following expenditures related to its 10-year-old manufacturing facility: 1. The heating system was replaced at a cost of $200,000. 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 $770,000. The new wing substantially increases the productive capacity of the plant. 3. Annual building maintenance was performed at a cost of $14,500. 4. All of the equipment on the assembly line in the plant was rearranged at a cost of $40,000. The rearrangement clearly increases the productive capacity of the plant. Required: Prepare journal entries to record each of the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 > Record the replacement of the heating system. Note: Enter debits before credits. General Journal Debit Event 1 Credit Record entry View general journal Clear entry

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Answer 1

Answer
Date	Accounts and Explanation	Debit	Credit
1	Accumulated depreciation—building	$200,000
	Cash		$200,000
2	Building	$770,000
	Cash		$770,000
3	Maintenance expense	$ 14,500
	Cash		$ 14,500
4	Equipment	$ 40,000
	Cash		$ 40,000