QS 8-9 (Algo) Revenue and capital expenditures LO C3 a. Paid $62,000 cash to replace a motor on equipment that extends its useful life by four years. b. Paid $310 cash per truck for the cost of their annual tune-ups. c. Paid $248 for the monthly cost of replacement filters on an air-conditioning system. d. Completed an addition to a building for $348,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record the four transactions from part 1. 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. No Transaction General Journal Debit Credit 1 a Equipment 62,000 Cash 62,000 2 b Building 310 Cash 310 3 248 Repairs expense Cash 248 4 d Land improvements 348,750 Cash 348,750 Accumulated amortization Accumulated depletion Accumulated depreciation Amortization expense Building Cash Depletion expense Depreciation expense Equipment Gain on sale of equipment Impairment loss Land Land improvements Leasehold improvements Loss from fire Prepaid rent Rent expense Repairs expense Vehicles Loss on disposal of equipment Loss on exchange of assets Loss on sale of equipment Mineral deposit Ore mine