Capital and Revenue Expenditures

On August 5, Welllington Co. paid $2,820 to repair the transmission on one of its delivery vans. In addition, Welllington paid $20 to install a GPS system in its van.

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

August 5	Accumulated Depreciation-Delivery Van	fill in the blank 10c83eff3f9303a_2	fill in the blank 10c83eff3f9303a_3
	Cash	fill in the blank 10c83eff3f9303a_5	fill in the blank 10c83eff3f9303a_6

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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.

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

August 5	Delivery Van	fill in the blank 76ca00fd4fc9fb3_2	fill in the blank 76ca00fd4fc9fb3_3
	Cash	fill in the blank 76ca00fd4fc9fb3_5	fill in the blank 76ca00fd4fc9fb3_6