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 an account to be debited 2. Painting of and lettering on truck immediately upon purchase 700 Select an account to be debited 3. Installation and testing of factory machinery 2,000 Select an account to be debited 4. Real estate broker’s commission on land purchased 3,500 Select an account to be debited 5. Insurance premium paid for first year’s insurance on new truck 880 Select an account to be debited 6. Cost of landscaping on property purchased 7,200 Select an account to be debited 7. Cost of paving parking lot for new building constructed 17,900 Select an account to be debited 8. Cost of clearing, draining, and filling land 13,300 Select an account to be debited 9. Architect’s fees on self-constructed building 10,000 Select an 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 an account to be debited 2. Painting of and lettering on truck immediately upon purchase 700 Select an account to be debited 3. Installation and testing of factory machinery 2,000 Select an account to be debited 4. Real estate broker’s commission on land purchased 3,500 Select an account to be debited 5. Insurance premium paid for first year’s insurance on new truck 880 Select an account to be debited 6. Cost of landscaping on property purchased 7,200 Select an account to be debited 7. Cost of paving parking lot for new building constructed 17,900 Select an account to be debited 8. Cost of clearing, draining, and filling land 13,300 Select an account to be debited 9. Architect’s fees on self-constructed building 10,000 Select an account to be debited
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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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 an account to be debited | |||
|---|---|---|---|---|---|---|
| 2. |
Painting of and lettering on truck immediately upon purchase
|
700 | Select an account to be debited | |||
| 3. |
Installation and testing of factory machinery
|
2,000 | Select an account to be debited | |||
| 4. |
Real estate broker’s commission on land purchased
|
3,500 | Select an account to be debited | |||
| 5. |
Insurance premium paid for first year’s insurance on new truck
|
880 | Select an account to be debited | |||
| 6. |
Cost of landscaping on property purchased
|
7,200 | Select an account to be debited | |||
| 7. |
Cost of paving parking lot for new building constructed
|
17,900 | Select an account to be debited | |||
| 8. |
Cost of clearing, draining, and filling land
|
13,300 | Select an account to be debited | |||
| 9. |
Architect’s fees on self-constructed building
|
10,000 | Select an account to be debited |
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