The following expenditures relating to plant
assets were made by Watkens Company during the first 2 months of 2014.
(a) Indicate the account title to which each expenditure should be debited.
(a) Indicate the account title to which each expenditure should be debited.
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1.
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Paid $7,000 of accrued taxes at the time the plant site was
acquired.
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2.
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Paid $200 insurance to cover a possible accident loss on new
factory machinery while the machinery was in transit.
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3.
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Paid $850 sales taxes on a new delivery truck.
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4.
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Paid $21,000 for parking lots and driveways on the new plant
site.
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5.
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Paid $250 to have the company name and slogan painted on the new
delivery truck.
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6.
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Paid $8,000 for installation of new factory machinery.
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7.
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Paid $900 for a 1-year accident insurance policy on the new
delivery truck.
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8.
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Paid $75 motor vehicle license fee on the new truck.
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