Accountants distinguish between capital and revenue expenditures for some types of transactions. The entries for such transactions can be made to any one of the following accounts:
Balance sheet accounts
a. Land
b. Buildings
c. Equipment
d. Trucks
e. Automobiles
f. Accumulated depreciation
Income statement accounts
g. A revenue account
h. An expense account.
Required: For each transaction below, indicate the account to be adjusted. Explain your answers and state any assumptions you make.
Example:
__b___ Architect fees to design building
_____ Battery purchased for truck
_____ Cash discount received on payment for equipment
_____ Commission paid to real estate agent to purchase land
_____ Cost of equipment test runs
_____ Cost to remodel building
_____ Cost to replace manual elevator with automatic elevator
_____ Cost of sewage system
_____ Equipment assembly expenditure
_____ Expenditures for debugging equipment
_____ Installation of air-conditioner in automobile
_____ Insurance paid during construction of building
_____ Legal fees associated with court case to defend title to land purchased
_____ Oil change for truck
_____ Payment for landscaping
_____ Proceeds received on demolition of derelict building on land purchased
_____ Expenditures for removal of derelict structures
_____ Repair made to building after moving in
_____ Repair of collision damage to truck
_____ Repair of torn seats in automobile
_____ Replacement of rusted fender on automobile
_____ Replacement of transmission in automobile
_____ Special floor foundations for installation of equipment
_____ Tires purchased for truck
_____ Transportation expenditures to bring equipment to plant