In: Accounting
Benedict Company incurred the following costs. Indicate to which account Benedict would debit each of the costs. No. Transactions Account
1. Sales tax on factory machinery purchased $ 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 3,500
5. Insurance premium paid for first year’s insurance on new truck 880
6. Cost of landscaping on property purchased 7,200
7. Cost of paving parking lot for new building constructed 17,900
8. Cost of clearing, draining, and filling land 13,300
9. Architect’s fees on self-constructed building 10,000
List of Accounts
-Buildings
-Architect's fees
--Pre-paid insurance
-insurance expense
-Land
- Tax expense
-Land improvements
-Repairs and maintenance expense
-Advertising expense
-Equipment
1. Sales tax on factory machinery purchased $ 5,000 | Equipment |
2. Painting of and lettering on truck immediately upon purchase 700 | Equipment |
3. Installation and testing of factory machinery 2,000 | Equipment |
4. Real estate broker’s commission on land purchased 3,500 | Land |
5. Insurance premium paid for first year’s insurance on new truck 880 | Prepaid insurance |
6. Cost of landscaping on property purchased 7,200 | Land improvements |
7. Cost of paving parking lot for new building constructed 17,900 | Land improvements |
8. Cost of clearing, draining, and filling land 13,300 | Land |
9. Architect’s fees on self-constructed building 10,000 | Buildings |