PE 10-5B Capital and revenue expenditures

On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.


Answer:
Aug. 7 Delivery Truck 1,675 Cash 1,675 7 Repairs and Maintenance Expense 40 Cash 40