a. Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $200 cash per truck for the cost of their annual tune-ups. c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $225,000 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 View journal entry worksheet No 1 Transaction a Equipment General Journal < Required 1 < Prev. 4 of 10 Debit Required 2 > Next > 40,000 Credit

a. Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $200 cash per truck for the cost of their annual tune-ups. c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $225,000 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 View journal entry worksheet No 1 Transaction a Equipment General Journal < Required 1 < Prev. 4 of 10 Debit Required 2 > Next > 40,000 Credit

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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On 1 June 20x1, CLM received written confirmation from a local government agency that it would receive a $1 million grant towards the purchase price of a new office building. The grant becomes receivable on the date that CLM transfers the $10 million purchase price to the vendor. On 1 October 20x1 CLM paid $10 million in cash for its new office building, which is estimated to have a useful life of 50 years. By 1 December 20x1, the building was ready for use. CLM received the government grant on 1January 20x2. Required Discuss the possible accounting treatments of the above in the financial statements of CLM for the year ended 31 December 2x1.
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answer in text form please (without image), Note: .Every entry should have narration please
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