Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be recorded
Question:
Costs incurred by Mills Company that relate to its property, plant, and equipment assets might be recorded in one of the five following accounts:
a. | an expense account |
b. | Accumulated Depreciation |
c. | Land |
d. | Building |
e. | Equipment |
?
Required:
For each of the costs identified below, indicate the type of account in which the cost should be recorded by placing the appropriate letter in the space provided.
____ | 25. | The legal fees associated with the acquisition of land. |
____ | 26. | The cost of replacing the engine in a truck when the cost of the old engine is not known. |
____ | 27. | The cost of replacing an oil furnace with an electric furnace (book value of the oil furnace is known). |
____ | 28. | The cost of a new addition to a warehouse that will be used to store inventory. |
____ | 29. | The cost of renovating a recently purchased ten-year-old office building. |
____ | 30. | The materials and labor costs incurred in installing a new piece of equipment. |
____ | 31 | The costs of tuning, lubricating, and tire rotation on a fleet of delivery trucks. |
____ | 32. | The additional costs in the construction of a building due to a small fire that occurred during the construction period. |
Holt McDougal Larson Geometry
ISBN: 9780547315171
1st Edition
Authors: Ron Larson, Laurie Boswell, Timothy D. Kanold, Lee Stiff