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29 March, 13:55

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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  1. 29 March, 16:11
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    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 -
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