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Capital and Revenue Expenditures

On August $5,$ Welllington Co$.$ paid $$2,830$ to repair the transmission on one of its delivery vans. In addition, Welllington paid $$28$ to install a GPS system in its van.

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Journalize the entries for the transmission. If an amount box does not require an entry, leave it blank.

August $5$

Accumulated Depreciation$-$Delivery Van

Cash

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Capital expenditures are the costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset's useful life.

Expenditures that are ordinary maintenance and repairs are expensed as they are incurred.

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Journalize the entry for GPS system expenditures. If an amount box does not require an entry, leave it blank.

August $5$

Delivery Van

Cash

Answer rating: 100% (QA)

ANSWER For the transmission repair August 5 Journal Entry Account Debit Credit Accumula... View the full answer