Textbook Problem

Expenditures After Acquisition

Listed below are several transactions:

a. Paid $80 cash to replace a minor part of an air conditioning system.

b. Paid $40,000 to fix structural damage to a building.

c. Paid $8,000 for monthly salaries.

d. Paid $12,000 to replace a manual cutting machine with a computer-controlled machine.

e. Paid $1,000 related to the annual painting of a building.

Required:

Classify each transaction as either a revenue expenditure, a capital expenditure, or neither.