Rahull (b)(c)(d)No. Account Titles and ExplanationFO(b)The $45 cost of repairing a printer was charged to Equipment.The $4,400 cost of a major engine overhaul was debited to Maintenance and Repairs Expense. The overhaul isexpected to increase the operating efficiency of the truck.The $6,400 closing costs associated with the acquisition of land were debited to Miscellaneous Expense.A $450 charge for transportation expenses on new equipment purchased was debited to Freight-In.(c)DebitCredit1

Repairs is an expense and should not be added to the cost of equipmentOverhaul is increases the…

The $6,400 closing costs associated with the acquisition of land were debited to Miscellaneous Expense. A $450 charge for transportation expenses on new equipment purchased was debited to Freight-In. count Titles and Explanation Debit Credit

The $6,400 closing costs associated with the acquisition of land were debited to Miscellaneous Expense. A $450 charge for transportation expenses on new equipment purchased was debited to Freight-In. count Titles and Explanation Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5Q: For each of the following transactions, state whether the cost would be capitalized (C) or recorded...

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Question

Rahull

(b)
(c)
(d)
No. Account Titles and Explanation
FO
(b)
The $45 cost of repairing a printer was charged to Equipment.
The $4,400 cost of a major engine overhaul was debited to Maintenance and Repairs Expense. The overhaul is
expected to increase the operating efficiency of the truck.
The $6,400 closing costs associated with the acquisition of land were debited to Miscellaneous Expense.
A $450 charge for transportation expenses on new equipment purchased was debited to Freight-In.
(c)
Debit
Credit
1

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