Joseph Bright lists the following transactions for the period ended 30 September 2017. Classify EACH item as follows: i. Write either capital or revenue in the expenditure type column to indicate the type of expenditure involved or EACH item. ii. Insert a-check mark (√) in the appropriate column to indicate whether the item is reported-in the Statement of profit or loss or in the Statement of financial position. The first one is done as an example. Description CLASSIFICATION OF EXPENDITURE Expenditure Type Statement where item should be reported Statement of Profit Statement of Example Wages of the computer operators 1 Cost of customizing software for use in business 2 Installing thief detection equipment 3 Cost of paper used for printing receipts during the year 4 Cost of toner used by the computer printer 5 Cost of adding extra memory to the compute or loss Revenue financial position
Joseph Bright lists the following transactions for the period ended 30 September 2017. Classify EACH item as follows: i. Write either capital or revenue in the expenditure type column to indicate the type of expenditure involved or EACH item. ii. Insert a-check mark (√) in the appropriate column to indicate whether the item is reported-in the Statement of profit or loss or in the Statement of financial position. The first one is done as an example. Description CLASSIFICATION OF EXPENDITURE Expenditure Type Statement where item should be reported Statement of Profit Statement of Example Wages of the computer operators 1 Cost of customizing software for use in business 2 Installing thief detection equipment 3 Cost of paper used for printing receipts during the year 4 Cost of toner used by the computer printer 5 Cost of adding extra memory to the compute or loss Revenue financial position
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Joseph Bright lists the following transactions for the
period ended 30 September 2017. Classify EACH
item as follows:
i. Write either capital or revenue in the expenditure
type column to indicate the type of expenditure
involved or EACH item.
ii. Insert a-check mark (√) in the appropriate column to
indicate whether the item is reported-in the Statement
of profit or loss or in the Statement of financial position.
The first one is done as an example.
Description
CLASSIFICATION OF EXPENDITURE
Expenditure
Type
Statement where item should be
reported
Statement of Profit Statement of
Example Wages of the computer
operators
1
Cost of customizing software for
use in business
2
Installing thief detection equipment
3
Cost of paper used for printing
receipts during the year
4
Cost of toner used by the
computer printer
5
Cost of adding extra memory to
the compute
or loss
Revenue
financial position
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