Question

1. Classify the following as either a revenue or a capital expenditure.
a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years.
b. Paid $200 cash per truck for the cost of their annual tune-ups.
c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.
d. Completed an addition to an office building for $225,000 cash.
2. Prepare the journal entries to record transactions a and d of part 1.


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  • CreatedMarch 18, 2015
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