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 Land ImprovementsLandPrepaid InsuranceBuildingEquipment 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited Prepaid InsuranceBuildingLand ImprovementsLandEquipment 3. Installation and testing of factory machinery 2,000 Select the account to be debited Prepaid InsuranceBuildingLandEquipmentLand Improvements 4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Prepaid InsuranceBuildingLandEquipmentLand Improvements 5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited EquipmentPrepaid InsuranceLand ImprovementsBuildingLand 6. Cost of landscaping on property purchased 7,200 Select the account to be debited Prepaid InsuranceLand ImprovementsEquipmentBuildingLand 7. Cost of paving parking lot for new building constructed 17,900 Select the account to be debited LandEquipmentLand ImprovementsPrepaid InsuranceBuilding 8. Cost of clearing, draining, and filling land 13,300 Select the account to be debited BuildingLandLand ImprovementsEquipmentPrepaid Insurance 9. Architect’s fees on self-constructed building 10,000 Select the account to be debited
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 Land ImprovementsLandPrepaid InsuranceBuildingEquipment 2. Painting of and lettering on truck immediately upon purchase 700 Select the account to be debited Prepaid InsuranceBuildingLand ImprovementsLandEquipment 3. Installation and testing of factory machinery 2,000 Select the account to be debited Prepaid InsuranceBuildingLandEquipmentLand Improvements 4. Real estate broker’s commission on land purchased 3,500 Select the account to be debited Prepaid InsuranceBuildingLandEquipmentLand Improvements 5. Insurance premium paid for first year’s insurance on new truck 880 Select the account to be debited EquipmentPrepaid InsuranceLand ImprovementsBuildingLand 6. Cost of landscaping on property purchased 7,200 Select the account to be debited Prepaid InsuranceLand ImprovementsEquipmentBuildingLand 7. Cost of paving parking lot for new building constructed 17,900 Select the account to be debited LandEquipmentLand ImprovementsPrepaid InsuranceBuilding 8. Cost of clearing, draining, and filling land 13,300 Select the account to be debited BuildingLandLand ImprovementsEquipmentPrepaid Insurance 9. Architect’s fees on self-constructed building 10,000 Select the account to be debited
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 14E
Related questions
Question
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
Land ImprovementsLandPrepaid InsuranceBuildingEquipment
|
|||
---|---|---|---|---|---|---|
2. |
Painting of and lettering on truck immediately upon purchase
|
700 | Select the account to be debited
Prepaid InsuranceBuildingLand ImprovementsLandEquipment
|
|||
3. |
Installation and testing of factory machinery
|
2,000 | Select the account to be debited
Prepaid InsuranceBuildingLandEquipmentLand Improvements
|
|||
4. |
Real estate broker’s commission on land purchased
|
3,500 | Select the account to be debited
Prepaid InsuranceBuildingLandEquipmentLand Improvements
|
|||
5. |
Insurance premium paid for first year’s insurance on new truck
|
880 | Select the account to be debited
EquipmentPrepaid InsuranceLand ImprovementsBuildingLand
|
|||
6. |
Cost of landscaping on property purchased
|
7,200 | Select the account to be debited
Prepaid InsuranceLand ImprovementsEquipmentBuildingLand
|
|||
7. |
Cost of paving parking lot for new building constructed
|
17,900 | Select the account to be debited
LandEquipmentLand ImprovementsPrepaid InsuranceBuilding
|
|||
8. |
Cost of clearing, draining, and filling land
|
13,300 | Select the account to be debited
BuildingLandLand ImprovementsEquipmentPrepaid Insurance
|
|||
9. |
Architect’s fees on self-constructed building
|
10,000 | Select the account to be debited
|
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