PE 10-1A Capital and revenue expenditures

On September 30, Madison River Inflatables Co. paid $1,425 to install a hydraulic lift and $35 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.

Answer:
Sept.  30
Delivery Truck..................................................... 1,425                                           Cash................................................................  1,425  

30
Repairs and Maintenance Expense................... 35  
                      Cash................................................................  35

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