identifying capital and revenue expenditures 558536

Identifying Capital and Revenue Expenditures For each of the following items, enter the correct letter to the left to show the type of expenditure. Use the following:

Type of Expenditure

Transactions

C Capital expenditure

(1) Purchased a patent, $4,300 cash.

R Revenue expenditure

(2) Paid $10,000 for monthly salaries.

N Neither

(3) Paid cash dividends, $20,000.

(4) Purchased a machine, $7,000; gave a long term note.

(5) Paid three year insurance premium, $900.

(6) Paid for routine maintenance, $200, on credit.

(7) Paid $400 for ordinary repairs.

(8) Paid $6,000 for extraordinary repairs.

(9) Paid $20,000 cash for addition to old building.

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