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Alameda Company incurred the following costs. Indicate to which account Alameda would debit each of the costs. In other words, how would Alameda capitalize such
Alameda Company incurred the following costs. Indicate to which account Alameda would debit each of the costs. In other words, how would Alameda capitalize such costs? (Hint: Costs of fixed assets include price paid for the fixed assets plus any other costs necessary to place fixed assets into service. Please note that machinery and vehicles may fall under Equipment.) Accounting Transactions No. Transactions Amount Accounts 1. Sales tax on factory machinery purchase $5,000 2. Painting of and lettering on truck immediately upon purchase $700 3. Installation and testing of factory machinery $2,000 4. Real estate broker's commission on land purchased (Hint: Think of what was purchased.) $3,500 5. Cost of landscaping on property purchased (Hint: You are trying to make the land more usable, which does NOT mean you are changing the structure of the land.) $7,200 6. Cost of clearing, draining, and filling land $13,300 7. Architect's fees on self-constructed building $10,000
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