The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2017.1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on new delivery truck. 4. Paid $17,500 for parking lots and driveways on new plant site. 5. Paid $250 to have company name and advertising slogan painted on new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for one year accident insurance policy on new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck. List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.

Question

Diamond Whitaker

Business

15 May, 12:00

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2017.1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on new delivery truck. 4. Paid $17,500 for parking lots and driveways on new plant site. 5. Paid $250 to have company name and advertising slogan painted on new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for one year accident insurance policy on new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck. List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.

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Carleigh Molina · Answer 1

The given expenditure should be debited are provided below:

1. - Paid $5,000 for taxes at the time of acquisition - Land

2. - Insurance cover on new machinery - Factory Machine

3. - Paid sales tax - Delivery Truck

4. - Expense for parking lots - Land Improvements

5. - Paid for printing logo on the truck - Delivery Truck

6 - Installation charges - Factory Machine

7. - paid for accident insurance policy - Prepaid Insurance

8. Paid for the license of new truck - Licence Expense -