QS 8-9 (Algo) Revenue and capital expenditures LO C3 Paid $54,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $270 cash per truck for the cost of their annual tune-ups. Paid $216 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $303,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1.
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QS 8-9 (Algo) Revenue and capital expenditures LO C3 Paid $54,000 cash to replace a motor on equipme...
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