Consider the following transactions: a. Acquired building for a down payment plus a mortgage payable b. Paid
Question:
a. Acquired building for a down payment plus a mortgage payable
b. Paid delinquent real estate taxes on a building at the time of its acquisition
c. Acquired new air-conditioning system for the building
d. Paid interest on building mortgage
e. Paid principal on building mortgage
f. Paid cash dividends
g. Paid travel expenses of sales personnel
h. Paid janitorial wages
i. Paid security guard’s wages
Required
Answer the following by letter:
1. Indicate which transactions are capital expenditures.
2. Indicate which transactions are expenses in the current year.
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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