Jada Company had the following transactions during the year. If all transactions were recorded properly, determine whether each transaction is capitalized or expensed. Choose: capitalized or expensed for 1-10. 1. Purchased a machine for $500,000 using a long-term note to finance it. [ Select ]["expensed", "capitalized"] 2. Paid $500 for ordinary repair. [ Select ]["expensed", "capitalized"] 3. Purchased a patent for $45,000 cash. [ Select ]["expensed", "capitalized"] 4. Paid $200,000 cash for addition to an existing building. [ Select ]["expensed", "capitalized"] 5. Paid $60,000 for monthly salaries. [ Select ]["expensed", "capitalized"] 6. Paid $2,500 for routine maintenance on equipment. [ Select ]["expensed", "capitalized"] 7. Paid $10,000 for extraordinary repairs. [ Select ]["expensed", "capitalized"] 8. Paid shipping of $1,000 to get the machine to the business. [ Select ]["expensed", "capitalized"] 9. Paid installation fees for the machine of $3,450. [ Select ]["expensed", "capitalized"] 10. Paid annual maintenance cost of $15,000. [ Select ]["expensed", "capitalized"]
Jada Company had the following transactions during the year. If all transactions were recorded properly, determine whether each transaction is capitalized or expensed.
Choose: capitalized or expensed for 1-10.
1. Purchased a machine for $500,000 using a long-term note to finance it. [ Select ]["expensed", "capitalized"]
2. Paid $500 for ordinary repair. [ Select ]["expensed", "capitalized"]
3. Purchased a patent for $45,000 cash. [ Select ]["expensed", "capitalized"]
4. Paid $200,000 cash for addition to an existing building. [ Select ]["expensed", "capitalized"]
5. Paid $60,000 for monthly salaries. [ Select ]["expensed", "capitalized"]
6. Paid $2,500 for routine maintenance on equipment. [ Select ]["expensed", "capitalized"]
7. Paid $10,000 for extraordinary repairs. [ Select ]["expensed", "capitalized"]
8. Paid shipping of $1,000 to get the machine to the business. [ Select ]["expensed", "capitalized"]
9. Paid installation fees for the machine of $3,450. [ Select ]["expensed", "capitalized"]
10. Paid annual maintenance cost of $15,000. [ Select ]["expensed", "capitalized"]
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