Question

a. paid $54,000 cash to replace a motor on equipment that extends its useful life by four years. b. paid $270 cash per truck for the cost of their annual tune - ups. c. paid $216 for the monthly cost of replacement filters on an air - conditioning system. d. completed an addition to a building for $303,750 cash. complete this question by entering your answers in the tabs below. required 1 required 2 prepare the journal entries to record the four transactions from part 1. view transaction list journal entry worksheet 1 2 3 4 paid $54,000 cash to replace a motor on equipment that extends its useful life by four years.

Explanation:

Step1: Identify transaction type for a

This is a capital - expenditure as it extends equipment's useful life. Debit the Equipment account and credit Cash.
Debit: Equipment $54,000
Credit: Cash $54,000

Step2: Identify transaction type for b

Annual tune - ups are a revenue expenditure. Debit Maintenance and Repairs Expense and credit Cash.
Debit: Maintenance and Repairs Expense $270
Credit: Cash $270

Step3: Identify transaction type for c

Monthly filter replacement is a revenue expenditure. Debit Maintenance and Repairs Expense and credit Cash.
Debit: Maintenance and Repairs Expense $216
Credit: Cash $216

Step4: Identify transaction type for d

Building addition is a capital - expenditure. Debit the Building account and credit Cash.
Debit: Building $303,750
Credit: Cash $303,750

Answer:

Transaction a:
Debit: Equipment $54,000
Credit: Cash $54,000
Transaction b:
Debit: Maintenance and Repairs Expense $270
Credit: Cash $270
Transaction c:
Debit: Maintenance and Repairs Expense $216
Credit: Cash $216
Transaction d:
Debit: Building $303,750
Credit: Cash $303,750