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:
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Type of Expenditure |
Transactions |
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C Capital expenditure |
(1) Purchased a patent, $4,300 cash. |
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R Revenue expenditure |
(2) Paid $10,000 for monthly salaries. |
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N Neither |
(3) Paid cash dividends, $20,000. |
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(4) Purchased a machine, $7,000; gave a long term note. |
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(5) Paid three year insurance premium, $900. |
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(6) Paid for routine maintenance, $200, on credit. |
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(7) Paid $400 for ordinary repairs. |
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(8) Paid $6,000 for extraordinary repairs. |
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(9) Paid $20,000 cash for addition to old building. |