Capital and Revenue Expenditures

On August $5,$ GTS Co$.$ paid $$3,290$ to repair the transmission on one of its delivery vans. In addition, GTS paid $$60$ to install a GPS system in its van.

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Journalize the entries for the transmission. If an amount box does not require an entry, leave it blank.

August $5$

Accumulated Depreciation$-$Delivery Van

Cash

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Capital expenditures are the costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset's useful life.

Expenditures that are ordinary maintenance and repairs are expensed as they are incurred.

Question Content Area

Journalize the entry for GPS system expenditures. If an amount box does not require an entry, leave it blank.

August $5$

Delivery Van

Cash

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Feedback

Capital expenditures are the costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset's useful life.

Expenditures that are ordinary maintenance and repairs are expensed as they are incurred.