For the business of J. James, Wholesale Chemist, classify the following between capital and revenue expenditure: Purchase of an extra motor van Cost of rebuilding warehouse wall which had fallen down Building extension to the warehouse Painting extension to warehouse when it is first build Repainting extension to warehouse three years after (d) Carriage costs on material for new warehouse extension Carriage costs on purchases Carriage cost of sales Legal costs of collecting debts Legal charges on acquiring new premises for office Fire insurance premium Costs of erecting new machine

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A: Activity-based budgeting (ABB) is a technique for tracking, researching, and analysing activities…

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A: Benefit from continuing operations = Sales- Cost of goods sold = P940,000 - P890,000 = P50,000

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A:

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A: Given information is:  Oki Company pays $264,000 for equipment expected to last four years and have…

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A: Present value is used to calculate the existing value of future cash flows for decision making.

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A:

Q: Identify the following expenditures as capital expenditures or revenue expenditures. (a)…

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A: The minor expenses related to fixed assets are recorded as repairs and maintenance expenses.  The…

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A: Generally organization have a different policies to record depreciation and expenses. In some…

Q: . Jay Hawk, maintenance supervisor for Boston Insurance Co., has purchased a riding lawnmower and…

A: Straight-line depreciation method: The depreciation method which assumes that the consumption of…

Q: Adama Company incurred the following costs.Indicate to which account Adama would debit each of the…

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A: Requirement 1:Identify each item by letter and list the amounts in the columnar form.

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A: Depreciation as per straight line method = (Cost - residual value)/useful life

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A: The answer is stated below:

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A: Refer step1 & step2 for complete understanding

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A: Required: Determine which alternative is less costly based on the annual worth method.

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A: Taxable income=Gross income-Operating expense-Depreciation=2,500,000-1,280,000-128,000=1,092,000…

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A: As per activity based budget, activities are analyzed thoroughly to find the cost of each activity.

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A: Given: The data is given as below,

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A:

Q: Some of the following items should be treated as capital and some as revenue. Carriage paid to bring…

A: Capital Expenditure- It is the expenditure that is incurred for purchasing of assets or for the…

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A: Capital expenditures: These costs are incurred to extend the useful life, production capacity, and…

Q: Capital and Revenue Expenditures                                   Kimbrell Freight Lines Co.…

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Q: During the current year, Airport Auto Rentals purchased 60 new automobiles at a cost of $14,000per…

A: Given information is: During the current year, Airport Auto Rentals purchased 60 new automobiles at…

Q: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new…

A: 1. Land - Land is non depreciable Assets of the organization. Company purchase it to develop…

Q: Determining Cost of Land On-Time Delivery Company acquired an adjacent lot to construct a new…

A: The following information is given in the question: 1. Paid  in cash $30,000 2. A short-term note…

Q: Classify the following items as either revenue or capital expenditure: An extension to an office…

A: Since there are multiple sub parts it is possible to solve only 3 sub parts as per company policy.

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $27,000 in…

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A: Expenditures: The useful life of the plant assets signifies the time period, that the company…

Q: Prepare the following journal entries.   (a)          The $3,700 cost of repairing a vehicle. The…

A: Here the main issue is distinction between revenue and capital expenditure.  An…