Tell whether each of the following transactions related to an office building is a revenue expenditure (RE) or a capital expenditure (CE). In addition, indicate whether each transaction is an ordinary repair (OR), an extraordinary repair (ER), an addition (A), a betterments (B), or none of these (N). 1. The hallways and ceilings in the building are repainted at a

Chapter 11, Exercises #6

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Tell whether each of the following transactions related to an office building is a revenue expenditure (RE) or a capital expenditure (CE). In addition, indicate whether each transaction is an ordinary repair (OR), an extraordinary repair (ER), an addition (A), a betterments (B), or none of these (N).

1. The hallways and ceilings in the building are repainted at a cost of $6,250.

2. The hallways, which have tile floors, are carpeted at a cost of $28,000.

3. A new wing is added to the building at a cost of $105,470.

4. Furniture is purchased for the entrance to the building at a cost of $13,250.

5. The air-conditioning system is overhauled at a cost of $21,153. The overhaul extends the useful life of the air-conditioning system by 10 years.

6. A cleaning firm is paid $150 per week to clean the newly installed carpets.

Related Book For answer-question

Principles of Accounting

11th Edition

Authors: Needles, Powers, crosson

ISBN: 978-1439037744