Question
(3) Matching... match each expenditure listed below with the most appropriate account: L = Land EQ = Equipment & Machinery LI = Land improvements B
(3) Matching... match each expenditure listed below with the most appropriate account: L = Land EQ = Equipment & Machinery LI = Land improvements B = Buildings EXP = Expense (repairs, etc.)
1. ___ A piece of equipment underwent a major overhaul that extended its useful life.
2. ___ A building was re-painted to help preserve the siding and thereby maintain its life.
3. ___ An adding machine costing $190 was purchased. The company has a capitalization cut-off policy of $500.
4. ___ An engineer was paid to install a new machine and to get all the specifications just right.
5. ___ In order to use some newly purchased land, costs were incurred to tear down an old building that sat on the land and in the way of the lands intended use.
6. ___ Fences were installed around the edges of a property.
7. ___ Paid for excavation costs for the basement of a new building.
8. ___ An oak tree (permanent in nature) was purchased and planted as part of the yard landscaping. The oak tree is expected to last for at least four hundred years.
9. ___ Paid the City of Walla Walla a fee for putting in new cement sidewalks along the street. The city will be responsible for all future maintenance, so the sidewalks will not have any future costs borne by the business.
10. ___ Replaced several windows of the office building that were broken in a wind storm.
11. ___ Paid the architect and city inspector to review building plans for a new warehouse building.
12. ___ Paid electricity and other variable overhead costs incurred during construction of a new machine for use in the business.
13. ___ Paid freight and insurance costs incurred to transport some equipment acquired for the business.
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