Exercise 9-1

The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2014. (b) Indicate the account title to which each expenditure should be debited.

1. Paid $7,000 of accrued taxes at the time the plant site was acquired. choose an account title Land Improvements Equipment Prepaid Insurance License Expense Land 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. choose an account title Land License Expense Land Improvements Equipment Prepaid Insurance 3. Paid $850 sales taxes on a new delivery truck. choose an account title Prepaid Insurance Land Land Improvements License Expense Equipment 4. Paid $21,000 for parking lots and driveways on the new plant site. choose an account title Land Equipment Prepaid Insurance Land Improvements License Expense 5. Paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title Land Improvements Equipment Prepaid Insurance License Expense Land 6. Paid $8,000 for installation of new factory machinery. choose an account title Equipment Land Improvements Prepaid Insurance Land License Expense 7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. choose an account title Land Prepaid Insurance Equipment License Expense Land Improvements 8. Paid $75 motor vehicle license fee on the new truck. choose an account title Prepaid Insurance Equipment License Expense Land Land Improvements