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The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2014.(b) Indicate the account title to which each expenditure should be debited.1. Paid $7,000 of accrued taxes at the time the plant site was acquired. choose an account title Land ImprovementsLandLicense ExpenseEquipmentPrepaid Insurance2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. choose an account title LandLand ImprovementsPrepaid InsuranceEquipmentLicense Expense3. Paid $850 sales taxes on a new delivery truck. choose an account title LandLand ImprovementsPrepaid InsuranceLicense ExpenseEquipment4. Paid $21,000 for parking lots and driveways on the new plant site. choose an account title EquipmentLicense ExpenseLand ImprovementsLandPrepaid Insurance5. Paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title LandEquipmentLicense ExpensePrepaid InsuranceLand Improvements6. Paid $8,000 for installation of new factory machinery. choose an account title License ExpenseLandEquipmentLand ImprovementsPrepaid Insurance7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. choose an account title LandPrepaid InsuranceEquipmentLand ImprovementsLicense Expense8. Paid $75 motor vehicle license fee on the new truck.

Question

The following expenditures relating to plant assets were made by Glenn Company during the first 2 months of 2014.

(b) Indicate the account title to which each expenditure should be debited.

1.  
Paid $7,000 of accrued taxes at the time the plant site was acquired.
  choose an account title
 Land ImprovementsLandLicense ExpenseEquipmentPrepaid Insurance
2.  
Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit.
  choose an account title
 LandLand ImprovementsPrepaid InsuranceEquipmentLicense Expense
3.  
Paid $850 sales taxes on a new delivery truck.
  choose an account title
 LandLand ImprovementsPrepaid InsuranceLicense ExpenseEquipment
4.  
Paid $21,000 for parking lots and driveways on the new plant site.
  choose an account title
 EquipmentLicense ExpenseLand ImprovementsLandPrepaid Insurance
5.  
Paid $250 to have the company name and slogan painted on the new delivery truck.
  choose an account title
 LandEquipmentLicense ExpensePrepaid InsuranceLand Improvements
6.  
Paid $8,000 for installation of new factory machinery.
  choose an account title
 License ExpenseLandEquipmentLand ImprovementsPrepaid Insurance
7.  
Paid $900 for a 1-year accident insurance policy on the new delivery truck.
  choose an account title
 LandPrepaid InsuranceEquipmentLand ImprovementsLicense Expense
8.  
Paid $75 motor vehicle license fee on the new truck.
check_circleAnswer
Step 1

Expenditures: The useful life of the plant assets signifies the time period, that the company estimates the asset to be operationally effective, to be able to generate revenue. Thus, in order to maintain its smooth operational efficiency, the company may incur some expenses for repairing, installation of additional features or improvements during the life span of the asset.

Step 2

 (b) Identify the account titles that should be ...

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