Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. Classify the above transactions as either a revenue expenditure or a capital expenditure. Prepare the journal entries to record the four transactions from part 1.
Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. Classify the above transactions as either a revenue expenditure or a capital expenditure. Prepare the journal entries to record the four transactions from part 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years.
- Paid $390 cash per truck for the cost of their annual tune-ups.
- Paid $312 for the monthly cost of replacement filters on an air-conditioning system.
- Completed an addition to a building for $438,750 cash.
- Classify the above transactions as either a revenue expenditure or a capital expenditure.
- Prepare the
journal entries to record the four transactions from part 1.
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