aldoProblem 1todFor each of the following purchases, does the purchase represent a capital or a revenueexpenditure?00000a. Complete remodeling of a restaurant dining room at a cost of $80,000.b. Repainting the exterior of a delivery truck at a cost of $500.c. Purchase of a pizza oven at a cost of $18,000.d. Purchase of a dozen pencil sharpeners with a life of ten years at a total cost of $65.e. Overhaul of the engine on a tour bus at a cost of $5,000, extending the life of the bus byfive years.illind bluoda te inuome srlf. Purchase of a computer system at a cost of $35,000.

Name: aldoProblem 1todFor each of the following purchases, does the purchas
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Description: aldoProblem 1todFor each of the following purchases, does the purchase represent a capital or a revenueexpenditure?00000a. Complete remodeling of a restaurant dining room at a cost of $80,000.b. Repainting the exterior of a delivery truck at a cost

Introduction:- Capital expenditures:- Capital expenditures are highly nature. which is expensed on purchases of fixed assets. fixed assets are used for revenue generation over a longer period. Revenue expenditures:- Revenue expenditures are routine expenditure in day to day business. which are small expenses used to run the day to day business operations.Explanations:- Sl.no Transactions Capital or Revenue a Complete remodeling of a restaurant dining room at a cost of $80,000 Capital expenditure b Repainting the exterior of a delivery truck at a cost of $500 Revenue expenditure c Purchase of a pizza oven at a cost of $18,000 Capital expenditure As per the Bartley by guidelines I am able to answer first three sub parts only.. I hope helpful to you.. If you are satisfied.. Support me.. Thank you..

Business

Accounting

Problem 1 For each of the following purchases, does the purchase represent a capital or a revenue expenditure? 00000 a. Complete remodeling of a restaurant dining room at a cost of $80,000. b. Repainting the exterior of a delivery truck at a cost of $500. c. Purchase of a pizza oven at a cost of $18,000. with a life of ten vears at a total cost of $65.

Problem 1 For each of the following purchases, does the purchase represent a capital or a revenue expenditure? 00000 a. Complete remodeling of a restaurant dining room at a cost of $80,000. b. Repainting the exterior of a delivery truck at a cost of $500. c. Purchase of a pizza oven at a cost of $18,000. with a life of ten vears at a total cost of $65.

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

aldo
Problem 1
tod
For each of the following purchases, does the purchase represent a capital or a revenue
expenditure?
00000
a. Complete remodeling of a restaurant dining room at a cost of $80,000.
b. Repainting the exterior of a delivery truck at a cost of $500.
c. Purchase of a pizza oven at a cost of $18,000.
d. Purchase of a dozen pencil sharpeners with a life of ten years at a total cost of $65.
e. Overhaul of the engine on a tour bus at a cost of $5,000, extending the life of the bus by
five years.
illind bluoda te inuome srl
f. Purchase of a computer system at a cost of $35,000.

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