The following expenditures relating to plant assets were made by John Kosinski Company during the first 2 months of 1996 .

1. Paid \(\$ 250\) to have company name and advertising slogan painted on new delivery truck.

2. Paid \(\$ 75\) motor vehicle license fee on the new truck.

3. Paid \(\$ 850\) sales taxes on new delivery truck.

4. Paid \(\$ 17,500\) for parking lots and driveways on new plant site.

5. Paid \(\$ 5,000\) of accrued taxes at time plant site was acquired.

6. Paid \(\$ 8,000\) for installation of new factory machinery.

7. Paid \(\$ 900\) for one-year accident insurance policy on new delivery truck.

8. Paid \(\$ 200\) insurance to cover possible accident loss on new factory machinery while the machinery was in transit.

\section*{Instructions}

(a) Explain the application of the cost principle in determining the acquisition cost of plant assets.

(b) List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.