Exercise 9-2

Adama Company incurred the following costs. Indicate to which account Adama would debit each of the costs.

1. Sales tax on factory machinery purchased $ 5,000 Select the account to be debited Building Land Land Improvements Prepaid Insurance Equipment 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited Prepaid Insurance Land Improvements Land Building Equipment 3. Installation and testing of factory machinery 2,000 Select the account to be debited Land Land Improvements Building Equipment Prepaid Insurance 4. Real estate brokers commission on land purchased 3,500 Select the account to be debited Prepaid Insurance Building Land Equipment Land Improvements 5. Insurance premium paid for first years insurance on new truck 880 Select the account to be debited Land Building Equipment Land Improvements Prepaid Insurance 6. Cost of landscaping on property purchased 7,200 Select the account to be debited Land Improvements Prepaid Insurance Building Land Equipment 7. Cost of paving parking lot for new building constructed 17,900 Select the account to be debited Land Building Land Improvements Equipment Prepaid Insurance 8. Cost of clearing, draining, and filling land 13,300 Select the account to be debited Land Improvements Prepaid Insurance Building Land Equipment 9. Architects fees on self-constructed building 10,000 Select the account to be debited Building Land Equipment Land Improvements Prepaid Insurance