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KatRina [158]
3 years ago
7

a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years.b. Paid $200 c

ash per truck for the cost of their annual tune-ups.c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.d. Completed an addition to an office building for $225,000 cash.1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.

Business
1 answer:
Nady [450]3 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Which of the following statements is true?
marissa [1.9K]

Answer: B) A)

Explanation:

  •   This kind of method, direct write-off method is referring to your question and it is considering a method that is used for recognizing bad debts expenses that are coming from credit sales of someone's account. With this method there is no account that is considering allowance and receivable that is found on someones's account is written-off directly to expense when there is uncollectible account expense.
  •   One of the greatest advantages is simplicity because those companies who are doing this method have to make only two transactions.

5 0
4 years ago
Read 2 more answers
Which of the following is an arbitrage opportunity?
FromTheMoon [43]

Answer:

D. The bank offers you a loan at 4% interest and a savings account that pays 5% interest.

Explanation:

<em>Arbitration</em> is a <em>financial strategy</em> that consists of the price difference between different markets on the same financial asset to obtain an economic benefit, usually without risk.

To perform arbitration, complementary operations (buy and sell) are carried out at the same time and wait for prices to adjust. The arbitration takes advantage of this divergence and obtains a risk-free gain. In other words, the arbitrajista is positioned short (sells) in the market with higher price and long (purchase) in the market with lower price. The benefit would come from the difference between the two markets.

7 0
3 years ago
) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter
grigory [225]

Answer:

165,000 pounds ($495,000)

Explanation:

To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :

<u>Materials Purchases Budget</u>

                                                                                                    Pounds

Materials Required for Production (80,000 x 2)                     160,000

Add Closing Materials Inventory (90,000 x 2 x 25%)              45,000

Total Materials                                                                          205,000

Less Opening Materials Inventory (80,000 x 2 x 25%)          (40,000)

Material Purchases                                                                    165,000

Cost per unit                                                                                       $3

Budgeted Materials Cost                                                       $495,000

6 0
3 years ago
List four wan technologies that are carried over the pstn.
oee [108]
There is actually a lot of wan technologies that are carried over the pstn. But the first thing we have to do, is to know what does the pstn means. The pstn means Public Switched Telephone Network. Though they have some similarities, the atm and the wan are different machines.
8 0
3 years ago
The amount of the average investment for a proposed investment of $191,000 in a fixed asset with a useful life of 4 years, strai
sineoko [7]

$30300
Annual depreciation = (purchase price - salvage value) / useful life
Straight line depreciation = Annual depreciation / (purchase price -salvage value)
The steps in calculating a straight line depreciation are:
Find out how much the asset costs.
To determine the entire depreciable amount, deduct the asset's estimated salvage value from the asset's purchase price.
Find out how long the item will be useful.
To calculate the annual depreciation amount, multiply the total from steps (2) and (3) by the figure determined in steps (3).
i.e, = $191000-$30300 = $160700
an asset with a useful life of 4 =$160700/4 =$40 175
so the straight-line depreciation rate is at 4.7%
In 4 years Straightline depreciation will be $30300
To learn more about Straight line depreciation please refer to-
brainly.com/question/11974283
#SPJ4

6 0
2 years ago
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