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

1. the heating system was replaced at a cost of $205,000. 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 $780,000. the new wing substantially increases the productive capacity of the plant.
3. annual building maintenance was performed at a cost of $15,500.
4. all of the machinery on the assembly line in the plant was rearranged at a cost of $42,000. 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 particular event, select "no journal entry required" in the first account field.)

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

explanation:

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answer; rapid growth in buyer demand and high buyer switching cost;