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On November 15, 2021,   Trade  Company made payments for the following expenditures:               Replacement parts for overhaul of machine                                                          550,000             Labor and overhead in connection with overhaul                                                 140,000                        Continuing, frequent and low cost repairs                                                            150,000             Replacement of broken gear of machine                                                               50,000           1. The overhaul resulted in a significant increase in production.                                2. the journal entry to record the expenditure to be capitalized would be

On November 15, 2021,   Trade  Company made payments for the following expenditures:               Replacement parts for overhaul of machine                                                          550,000             Labor and overhead in connection with overhaul                                                 140,000                        Continuing, frequent and low cost repairs                                                            150,000             Replacement of broken gear of machine                                                               50,000           1. The overhaul resulted in a significant increase in production.                                2. the journal entry to record the expenditure to be capitalized would be

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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. On November 15, 2021,   Trade  Company made payments for the following expenditures:

 

            Replacement parts for overhaul of machine                                                          550,000

            Labor and overhead in connection with overhaul                                                 140,000           

            Continuing, frequent and low cost repairs                                                            150,000

            Replacement of broken gear of machine                                                               50,000

 

        1. The overhaul resulted in a significant increase in production.

                       

       2. the journal entry to record the expenditure to be capitalized would be

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