Journal entries : Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side. Accounting rules for journal entries : To increase balance of the account : Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account : Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company. Capital expenditure : Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment. 1. To identify: The given expenses come under capital or revenue expenditure.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

2.

To determine

To prepare: Journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hello tutor answer these general accounting question

Alam Store recorded the following: cash sales $52,000, credit sales $78,000, sales return $6,000, sales allowances $4,300, and early payment discount taken by customers $3,600. Calculate the net sales.

What is the production cost per unit?

Answer 2

Question

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

2.

To determine

To prepare: Journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

2.

To determine

To prepare: Journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

2.

To determine

To prepare: Journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

2.

To determine

To prepare: Journal entries.

Answer 6

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

Answer 7

Chapter 8, Problem 8QS

To determine

Journal entries: Journal is the book of original entry whereby all the financial transactions are recorded in chronological order. Under this method, each transaction has two sides, debit side and credit side. Total amount of debit side must be equal to the total amount of credit side.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Revenue expenditure: Revenue expenditure is the normal and reasonable expenses that are spent on everyday operations of a particular business or a company.

Capital expenditure: Capital expenditure are those expenditure whose benefits are availed for more than a year and are expenses spent on acquiring the fixed assets such as machinery, furniture and equipment.

1.

To identify: The given expenses come under capital or revenue expenditure.

Answer 8

2.

To determine

To prepare: Journal entries.

Answer 9

2.

To determine

To prepare: Journal entries.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - A company purchased machinery for $ 10,800,000 on...Ch. 8 - Prob. 4MCQ Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

Concept explainers

Videos

To prepare: Journal entries.

Want to see the full answer?

Chapter 8 Solutions