Question

Benedict Company incurred the following costs. Indicate to which account Benedict would debit each of the costs.

No.		Transactions				Account
1.		Sales tax on factory machinery purchased		$ 5,000		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
2.		Painting of and lettering on truck immediately upon purchase		700		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
3.		Installation and testing of factory machinery		2,000		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
4.		Real estate broker’s commission on land purchased		3,500		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
5.		Insurance premium paid for first year’s insurance on new truck		880		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
6.		Cost of landscaping on property purchased		7,200		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
7.		Cost of paving parking lot for new building constructed		17,900		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
8.		Cost of clearing, draining, and filling land		13,300		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance
9.		Architect’s fees on self-constructed building		10,000		select one from the following: Insurance Expense or Land or Buildings or Equipment or Architect’s Fees or Tax Expense or Repairs and Maintenance Expense or Advertising Expense or Land Improvements or Prepaid Insurance

Answer 1

Equipment Equipment Equipment Land Prepaid Insurance Land improvements Land improvements Land Buildings