Acc 291 Week 1 E9-2

University of Phoenix

ACC/291

Week 1

E9-2

E9-2

Determine the property, equipment, and plant costs while indicating which account Trudy Company should debit each cost into.

Costs Trudy Company incurred:

1. Sales tax on factory machinery purchased 5,000

2. Painting of and lettering on truck immediately upon purchase 700

3. Installation and testing of factory machinery 2,000

4. Real estate broker's commission on land purchased 3,500

5. Insurance premium paid for first year's insurance on new truck 880

6. Cost of landscaping on property purchase 7,200

7. Cost of paving parking lot for new building constructed 17,900

8. Cost of clearing, draining, and filling land 13,300

9. Architect's fees on self-constructed building 10,000

My Solution

1. Sales tax on factory...