Question

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

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.

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

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

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.

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.)

Answer 1

Journal Entry for each of the above expenditure is shown as follows:-

Journal Entries (Amounts in $)

Event	General Journal	Debit	Credit
1	Accumulated Depreciation-Building	250,000
	Cash		250,000
2	Building	750,000
	Cash		750,000
3	Maintenance Expense	14,000
	Cash		14,000
4	Equipment	50,000
	Cash		50,000