Question

In: Accounting

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

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

Solutions

Expert Solution

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

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