Disposal_1

They are recorded as expenses and deducted from revenues in the current period’s income statement. Examples are cleaning, repainting, adjustments, and lubricants.

• Capital Expenditures

• Revenue Expenditures

They are debited to asset accounts and reported on the balance sheet. Examples are roofing replacement, plant expansion, and major over-hauls of machinery and equipment

• Revenue Expenditures

• Capital Expenditures

Bahrain Maintenance company has repairs a washing machine and the result will increase the machine useful life 3 years more what kind of expense was the repair

• Revenue Expenditure

• Capital Expenditure

Amwaj Establishment renew truck engine and increase life of the truck by 5 years, the journal entry to record the transaction will be

• Debit . Maintenance Expense. Credit Cash

• Debit. Truck

  Credit .Cash

Amwaj Establishment changed truck engine oil which is necessary to operate the journal entry to record the transaction will be

• Debit . Maintenance Expense. Credit Cash

• Debit. Truck

  Credit .Cash