Question

1.	Paid 1.2 million for a plant site
2.	Paid $8,000 of legal fees on the purchase of the plant site.
3.	Paid $39,000 to demolish an old building on the plant site; residual materials were sold for $7,000.
4.	Paid $55,000 for paving the parking lot on the plant site.
5.	Paid $57,600 in architect fees for the design of the new plant.
6.	Promised to pay $150,000 in restoration costs for the land when the company is finished using the plant site.
7.	Paid $80,000 for a new delivery truck.
8.	Paid $3,000 to have the company name and advertising slogan painted on the new truck.
9.	Paid a $400 motor vehicle license fee on the new truck.
10.	Paid $2,800 for a one-year accident insurance policy on the new truck.

Beside each transaction write the account title that the expenditure should be debited to.

Select from these account titles: Land, Land Improvements, Buildings, Vehicles, Vehicle Expense, Prepaid Insurance.

Answer 1

1	Paid 1.2 million for a plant site	Land
2	Paid $8,000 of legal fees on the purchase of the plant site.	Land
3	Paid $39,000 to demolish an old building on the plant site; residual materials were sold for $7,000.	Land
4	Paid $55,000 for paving the parking lot on the plant site.	Land Improvements
5	Paid $57,600 in architect fees for the design of the new plant.	Buildings
6	Promised to pay $150,000 in restoration costs for the land when the company is finished using the plant site.	Land
7	Paid $80,000 for a new delivery truck.	Vehicles
8	Paid $3,000 to have the company name and advertising slogan painted on the new truck.	Vehicles
9	Paid a $400 motor vehicle license fee on the new truck.	Vehicle Expense
10	Paid $2,800 for a one-year accident insurance policy on the new truck.	Prepaid Insurance