Question

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

Answer 1

Answer:

Acc dep - manufacturing facility  205,000 debit

                           Cash                                205,000 credit

--to record cost heating system--

Wing              780,000 debit

        Cash                  780,000 credit

--to reocrd addition of a new wing--

maintenance expense 15,500 debit

                           cash              15,500 credit

--to record maintenance expense for the period

Assembly line 42,000 debit

               Cash              42,000 credit

--to record new assembly line--

Explanation:

1.- the improvements will decrease the accumulated depreciation

2.- The wing will be considered a new asset and depreciate separately

3.- the maintenance cost is cost of the period as it do not upgrade or change the productivity is a cost to maintain the current level.

4.- the assembly line will be reocgnize as an asset as increase the productive capaictive of the plant