Journalize Each of the Following Transactions

question 92

Essay

Journalize each of the following transactions:
(a)A wing costing $2,345,000 was added to the building. A new mortgage was issued for the cost.(b)Equipment was upgraded to increase its capacity to produce widgets. The upgrade cost of $11,500 was paid in cash.(c)A major overhaul costing $8,000 on a machine increased the useful life by 4 years. The payment was made in cash.

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Definitions:

Optimization Models

Mathematical models that are designed to find the best possible solution or outcome from a set of parameters or constraints.

Prescriptive Analytics

The set of analytical techniques that yield a best course of action.

Maximize

To increase or make as large or great as possible, often used in the context of mathematical optimization.

Minimize

To reduce to the smallest possible amount or degree.