Exercise 9-1 The following expenditures relating to plant assets were made by Newport Company during the first 2 months of 2012. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck. Indicate the account title to which each expenditure should be debited. 1. Paid $7,000 of accrued taxes at the time the plant site was acquired. 2. Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. 3. Paid $850 sales taxes on a new delivery truck. 4. Paid $21,000 for parking lots and driveways on the new plant site. 5. Paid $250 to have the company name and slogan painted on the new delivery truck. 6. Paid $8,000 for installation of new factory machinery. 7. Paid $900 for a 1-year accident insurance policy on the new delivery truck. 8. Paid $75 motor vehicle license fee on the new truck.

Exercise 9-1

The following expenditures relating to plant assets were made by Newport Company during the first 2 months of 2012.

1.		Paid $7,000 of accrued taxes at the time the plant site was acquired.
2.		Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit.
3.		Paid $850 sales taxes on a new delivery truck.
4.		Paid $21,000 for parking lots and driveways on the new plant site.
5.		Paid $250 to have the company name and slogan painted on the new delivery truck.
6.		Paid $8,000 for installation of new factory machinery.
7.		Paid $900 for a 1-year accident insurance policy on the new delivery truck.
8.		Paid $75 motor vehicle license fee on the new truck.

 

 

Indicate the account title to which each expenditure should be debited.

1.		Paid $7,000 of accrued taxes at the time the plant site was acquired.
2.		Paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit.
3.		Paid $850 sales taxes on a new delivery truck.
4.		Paid $21,000 for parking lots and driveways on the new plant site.
5.		Paid $250 to have the company name and slogan painted on the new delivery truck.
6.		Paid $8,000 for installation of new factory machinery.
7.		Paid $900 for a 1-year accident insurance policy on the new delivery truck.
8.		Paid $75 motor vehicle license fee on the new truck.

 

 

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