2024 – On April 29 Welllington Co paid 3 090 to install a hydraulic lift and 47

On April 29, Welllington Co. paid $3,090 to install a hydraulic lift and $47 for an air filter for one of its delivery trucks.

Journalize the entry for the new lift expenditure.

 

 

Journalize the entry for the air filter expenditure.

 

Dick Gaines owns and operates Gaines Print Co. During February, Gaines Print Co. incurred the following costs (1-12 below) in acquiring two printing presses. One printing press was new, and the other was used by a business that recently filed for bankruptcy.

a.  Indicate which costs incurred in acquiring the new printing press (1-6 below) should be debited to the asset account.

b.  Indicate which costs incurred in acquiring the used printing press (7-12 below) should be debited to the asset account.

 

Determining Cost of Land

Intermountain Delivery Company acquired an adjacent lot to construct a new warehouse, paying $100,000 and giving a short-term note for $700,000. Legal fees paid were $5,000, delinquent taxes assumed were $18,500, and fees paid to remove an old building from the land were $12,000. Materials salvaged from the demolition of the building were sold for $4,000. A contractor was paid $950,000 to construct a new warehouse.

Determine the cost of the land to be reported on the balance sheet.

 

Capital and Revenue Expenditures

Huffine Lines Co. incurred the following costs related to trucks and vans used in operating its delivery service:

 

Classify each of the costs as a capital expenditure or a revenue expenditure.