Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Paid 1.2 million for a plant site 2. Paid $8,000 of legal fees on the purchase of the plant site. 3. Paid $39,000 to
1. | Paid 1.2 million for a plant site | |||
---|---|---|---|---|
2. | Paid $8,000 of legal fees on the purchase of the plant site. | |||
3. | Paid $39,000 to demolish an old building on the plant site; residual materials were sold for $7,000. | |||
4. | Paid $55,000 for paving the parking lot on the plant site. | |||
5. | Paid $57,600 in architect fees for the design of the new plant. | |||
6. | Promised to pay $150,000 in restoration costs for the land when the company is finished using the plant site. | |||
7. | Paid $80,000 for a new delivery truck. | |||
8. | Paid $3,000 to have the company name and advertising slogan painted on the new truck. | |||
9. | Paid a $400 motor vehicle license fee on the new truck. | |||
10. | Paid $2,800 for a one-year accident insurance policy on the new truck. |
Beside each transaction write the account title that the expenditure should be debited to.
Select from these account titles: Land, Land Improvements, Buildings, Vehicles, Vehicle Expense, Prepaid Insurance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started