The following expenditures relating to plant assets were made by glenn company during the first 2 months of 2014. (b) 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. choose an account title
2. paid $200 insurance to cover a possible accident loss on new factory machinery while the machinery was in transit. choose an account title
3. paid $850 sales taxes on a new delivery truck. choose an account title
4. paid $21,000 for parking lots and driveways on the new plant site. choose an account title
5. paid $250 to have the company name and slogan painted on the new delivery truck. choose an account title
6. paid $8,000 for installation of new factory machinery. choose an account title
7. paid $900 for a 1-year accident insurance policy on the new delivery truck. choose an account title
8. paid $75 motor vehicle license fee on the new truck.
explain the application of the historical cost principle in determining the acquisition cost of plant assets.
list the numbers of the transactions, and opposite each indicate the account title to which each expenditure should be debited.