Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Answer:
Part 1
Replacement of motor on equipment - Capital Expenditure
Cost of Initial tune -ups - Capital Expenditure
Replacement filters on an air-conditioning system - Revenue Expenditure
Addition to a Building - Capital Expenditure
Part 2
Item 1
Debit : Equipment $42,000
Credit : Cash $42,000
Item 2
Debit : Truck $210
Credit : Cash $210
Item 3
Debit : Replacement expense $168
Credit : Cash $168
Item 4
Debit : Buildings $236,250
Credit : Cash $236,250
Explanation:
Capital Expenditure is any expenditure incurred to enhance the economic value of an asset. This include improvements or costs directly incurred to place the asset in the location and condition intended for use by the management.
Revenue Expenditure is any expenditure incurred to maintain daily operations of the company. This includes repairs and maintenance expenses.
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.