1. A capitalization is something that brings value to the company. Simply painting would be considered maintenance, but modifications for specialized use, and overhaul of transmission to extend life are both possible capital assets. 2. A debit to an asset account will increase the balance: IE: a debit to your bank account is an actual deposit. Land valued at 300,000 would be one of the included journal entries. 3. The money has "come out", so you want to show it as outflow into the investing activities. 4. All assets divided by liabilities will give you a ratio. 5. They are asking only about assets, I'd go with the 30000. since that is the increase in the year end asset total. 6. 40000 x 8, divided by 365 (days in the year) multiplied by the number of days between June 1 and Dec 31. I am only a bookkeeper not an accountant. I've answered to the best of my knowledge and experience. Good luck.