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paid $70,000 cash to replace a motor on equipment that extends its useful life by four years. paid $350 cash per truck for the cost of their annual tune-ups. paid $280 for the monthly cost of replacement filters on an air-conditioning system. completed an addition to a building for $393,750 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.

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Paid $70,000 cash to replace a motor on equipment that extends its useful life by four years. paid $350 cash per truck for the cost of their annual tune-ups Capital expenditure.

Capital expenditures (CapEx) are funds used to purchase, repair, upgrade, or improve a company's fixed assets. B. A building, company, or facility. CapEx is different from day-to-day business, which falls into the category of operating expenses.

Capital Expenditure (CapEx) is the money a business uses to purchase, upgrade, or extend the life of an asset. Investing is a long-term investment. In other words, the useful life of the acquired asset is more than one year.

Capital expenditures are recorded in the PP&E section of the balance sheet. CapEx is also included in the investing activity section of the cash flow statement. Fixed assets are depreciated over time to spread the cost of the asset over its useful life.

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