General
Capitalizing a Major Asset Overhaul
Recording a significant repair that extends the life of a machine by several years.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Machinery & Equipment | Asset (+) | 4,000.00 | - |
| Cash in Bank | Asset (-) | - | 4,000.00 |
💡 Accountant's Note
Regular maintenance (oil changes) is expensed. But a major engine replacement that makes the machine last 5 years longer is 'Capitalized'—added to the asset value.
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