Accountants identify all expenditures as either a capital or a revenue expenditure. For each transaction listed, indicate the account to be debited. Assume all expenditures are material in amount. Transaction Select Account a. Changed engine oil b. Clear trees off purchased land c. Poured a concrete pad for a new machine d. Installed a refrigeration unit in the truck e. Replaced the truck tires f. Added an addition on to an existing building g. Re-painted the building h. Freight costs to ship newly acquired machine i. Purchased an office desk j. Architect fees incurred before building k. Costs to install a new machine l. Costs to train machine operators on new machine m. Costs to tear down a building on purchased land n. Replaced a burned out headlight on a truck o. Installed parking lot lighting p. Installed a wind deflector on truck to increase fuel mileage q. Paid delinquent real estate taxes on purchased land r. Cost to overhaul a purchased used machine s. Interest paid on money borrowed to construct a building t. Periodic lube and grease of machines

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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Accountants identify all expenditures as either a capital or a revenue expenditure. For each
transaction listed, indicate the account to be debited. Assume all expenditures are material
in amount.

	Transaction	Select Account
a.	Changed engine oil
b.	Clear trees off purchased land
c.	Poured a concrete pad for a new machine
d.	Installed a refrigeration unit in the truck
e.	Replaced the truck tires
f.	Added an addition on to an existing building
g.	Re-painted the building
h.	Freight costs to ship newly acquired machine
i.	Purchased an office desk
j.	Architect fees incurred before building
k.	Costs to install a new machine
l.	Costs to train machine operators on new machine
m.	Costs to tear down a building on purchased land
n.	Replaced a burned out headlight on a truck
o.	Installed parking lot lighting
p.	Installed a wind deflector on truck to increase fuel mileage
q.	Paid delinquent real estate taxes on purchased land
r.	Cost to overhaul a purchased used machine
s.	Interest paid on money borrowed to construct a building
t.	Periodic lube and grease of machines

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