1. Classify the following expenditures as revenue (R) or capital expenditures (C):
a. The monthly replacement cost of filters on an air conditioning system, $120.
b. The cost of replacing a compressor for a meat packing firm's refrigeration system that extends the estimated life of the system by four years, $40,000.
c. The cost of annual tune-ups for delivery trucks, $200.
d. The cost of $175,000 for an addition of a new wing on an office building.
2. Prepare the journal entry to record each of the above (assume all transactions occurred on
March 15, 2014, and were on account).

  • CreatedJanuary 08, 2015
  • Files Included
Post your question