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Question
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.
Answer
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