Consider each of the items below. Place the proper letter in the blank space provided to indicate the account or accounts to be debited when recording each transaction using the preferred accounting treatment.

A. Land

B. Land Improvements

C. Building

D. Machinery and Equipment

E. Expense

_____ 1. Cash paid for land and old building.

_____ 2. Removal of old building.

_____ 3. Architects fees.

_____ 4. Interest cost of short term loans during construction.

_____ 5. Purchase price for machinery.

_____ 6. Machinery installation cost.

_____ 7. Assessment by city for sidewalks the city will be responsible for maintaining.

_____ 8. Paving of parking lots, signage and lighting.

_____ 9. Trees, shrubs, and other landscaping that is permanent in nature.

_____ 10. Storage charges for machinery necessitated by non-completion of the building when machinery was delivered.