Edit in JSFiddle

(function() {
    
    $("#create").on("click", function() {
        
        // add them item to the table        
        $("#expenses").append("<tr><td>" + $("#type option:selected").text() + 
                              "</td><td>" + $("#merchant").val() + 
                              "</td><td>" + $("#amount").val() +
                              "</td></tr>");

        // clear out the form
        $("#type").val("food");
        $("#merchant").val("");
        $("#amount").val("");
    });

})();
<div class="form">       
  <dl>
    <dt>Type</dt>
    <dd>
        <select id="type">
            <option value="food">Food</option>
            <option value="shopping">Shopping</option>
            <option value="bills">Bills</option>
        </select>
    </dd>
    <dt>Merchant</dt>
    <dd><input id="merchant" type="text" /></dd>
    <dt>Amount</dt>
    <dd><input id="amount" type="text" /></dd>
  </dl>
    <dt>&nbsp;</dt>
    <dd><button id="create" class="k-button">Add</button></dd>
</div>

<div class="span4"><b>Expenses</b><hr />
    <table id="expenses">
        
    <table>
</div>