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  The overhaul resulted in a significant increase in production. Prepare  the journal entry to record the expenditure to be capitalized:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

 The overhaul resulted in a significant increase in production.

Prepare  the journal entry to record the expenditure to be capitalized:

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