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Benedict Company incurred the following costs. 1. Sales tax on factory machinery purchased 2. Painting of...

Benedict Company incurred the following costs. 1. Sales tax on factory machinery purchased 2. Painting of and lettering on truck immediately upon purchase 3. Installation and testing of factory machinery 4. Real estate broker’s commission on land purchased 5. Insurance premium paid for first year’s insurance on new truck 6. Cost of landscaping on property purchased 7. Cost of paving parking lot for new building constructed 8. Cost of clearing, draining, and filling land 9. Architect’s fees on self-constructed building Indicate to which account Benedict would debit each of the costs.

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Answer #1
1 Sales tax on factory machinery purchased Equipment (Machinery)
2 Painting of and lettering on truck immediately upon purchase Equipment (Truck)
3 Installation and testing of factory machinery Equipment (Machinery)
4 Real estate broker’s commission on land purchased Land
5 Insurance premium paid for first year’s insurance on new truck Prepaid Insurance
6 Cost of landscaping on property purchased Land Improvements
7 Cost of paving parking lot for new building constructed Land Improvements
8 Cost of clearing, draining, and filling land Land
9 Architect’s fees on self-constructed building Buildings
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