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1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.

1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $250 cash per truck for the cost of their annual tune-ups. c. Paid $200 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $281,250 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Classify the above transactions as either a revenue expenditure or a capital expenditure. Transaction a b C D d
Transcribed Image Text:a. Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $250 cash per truck for the cost of their annual tune-ups. c. Paid $200 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $281,250 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Classify the above transactions as either a revenue expenditure or a capital expenditure. Transaction a b C D d
a. Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $250 cash per truck for the cost of their annual tune-ups. c. Paid $200 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $281,250 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the four transactions from part 1. View transaction list Journal entry worksheet < 1 Transaction a 2 Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. Note: Enter debits before credits. 3 Record entry 4 General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:a. Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $250 cash per truck for the cost of their annual tune-ups. c. Paid $200 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $281,250 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the four transactions from part 1. View transaction list Journal entry worksheet < 1 Transaction a 2 Paid $50,000 cash to replace a motor on equipment that extends its useful life by four years. Note: Enter debits before credits. 3 Record entry 4 General Journal Clear entry Debit Credit View general journal
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