a. Paid $40,000 cash to replace a compressor on a refrigeration system that extends its useful life by four years.b. Paid $200 cash per truck for the cost of their annual tune-ups.c. Paid $175 for the monthly cost of replacement filters on an air-conditioning system.d. Completed an addition to an office building for $225,000 cash.1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
