Question

For each of the following expenditures, indicate the type of account (asset or expense) in which the expenditure should be recorded.

	a. $800 for repairing damage that resulted from the careless unloading of a new machine. b. $7,200 cost of designing and registering a trademark. c. $3,700 in legal fees incurred to perform a title search for the acquisition of land. d. $1,200 cost of patching a leak in the roof of a building. e. $95,000 cost of salaries paid to the research and development staff.

Answer 1

Sr. No	Particulars	Answer =
a.	$800 for repairing damage that resulted from the careless unloading of a new machine.	Expenses
b.	$7,200 cost of designing and registering a trademark.	Assets
c.	$3,700 in legal fees incurred to perform a title search for the acquisition of land.	Assets
d.	$1,200 cost of patching a leak in the roof of a building.	Expenses
e.	$95,000 cost of salaries paid to the research and development staff.	Expenses