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.
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.
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 22E
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Depreciation Methods
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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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.
|
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