Adama Company incurred the following costs. Indicate to which account Adama would debit each of the costs.
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Question:
Adama Company incurred the following costs.
Indicate to which account Adama would debit each of the costs.
1. | Sales tax on factory machinery purchased | $5,000 | Select an account to be debited | |||
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2. | Painting of and lettering on truck immediately upon purchase | 700 | Select an account to be debited | |||
3. | Installation and testing of factory machinery | 2,000 | Select an account to be debited | |||
4. | Real estate broker’s commission on land purchased | 3,500 | Select an account to be debited | |||
5. | Insurance premium paid for first year’s insurance on new truck | 880 | Select an account to be debited | |||
6. | Cost of landscaping on property purchased | 7,200 | Select an account to be debited | |||
7. | Cost of paving parking lot for new building constructed | 17,900 | Select an account to be debited | |||
8. | Cost of clearing, draining, and filling land | 13,300 | Select an account to be debited | |||
9. | Architect’s fees on self-constructed building | 10,000 | Select an account to be debited |
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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