The transactions that follow are expenditures related to property, plant, and equipment: 1. Operator controls on equipment
Question:
The transactions that follow are expenditures related to property, plant, and equipment:
1. Operator controls on equipment were replaced for $7,000, because the original control devices were not adequate.
2. A total of $4,600 was spent for decorative landscaping (planting flowers and shrubs, etc.).
3. A new air conditioning system for the office was purchased for $16,000.
4. Windows broken in a labour dispute were replaced for $2,400.
5. A fee of $1,500 was paid for adjusting and testing new machinery before its use.
6. Machinery damaged by a forklift was repaired for $5,000.
7. The transmission in a delivery truck was repaired for $2,500.
8. Expenditures totalling $3,000 were incurred to repaint the exterior of the building.
9. Paid $20,000 to convert the company's delivery vehicles from gasoline to propane.
10. Paid $10,000 to convert the company's light bulbs to energy efficient bulbs.
Instructions
For each of the transactions listed above, indicate the title of the account that you think should be debited in recording the transaction. Briefly explain your reasoning.
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine