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Q1/ The transactions that follow are expenditures related to property, plant, and equipment: For each of...

Q1/

The transactions that follow are expenditures related to property, plant, and equipment:

For each of the transactions, indicate the title of the account that you think should be debited in recording the transaction.

1.

Operator controls on equipment were replaced for $7,370, because the original control devices were not adequate.

Land ImprovementsVehiclesBuildingsEquipmentRepair and Maintenance Expense

2.

A total of $5,013 was spent for decorative landscaping (planting flowers and shrubs, etc.).

BuildingsLand ImprovementsRepair and Maintenance ExpenseEquipmentVehicles

3.

A new air conditioning system for the office was purchased for $16,730.

EquipmentVehiclesRepair and Maintenance ExpenseLand ImprovementsBuildings

4.

Windows broken in a labour dispute were replaced for $2,219.

BuildingsVehiclesRepair and Maintenance ExpenseLand ImprovementsEquipment

5.

A fee of $1,640 was paid for adjusting and testing new machinery before its use.

VehiclesBuildingsLand ImprovementsRepair and Maintenance ExpenseEquipment

6.

Machinery damaged by a forklift was repaired for $5,260.

Repair and Maintenance ExpenseEquipmentBuildingsVehiclesLand Improvements

7.

The transmission in a delivery truck was repaired for $2,260.

Land ImprovementsEquipmentVehiclesRepair and Maintenance ExpenseBuildings

8.

Expenditures totalling $2,830 were incurred to repaint the exterior of the building.

EquipmentLand ImprovementsRepair and Maintenance ExpenseVehiclesBuildings

9.

Paid $20,000 to convert the company’s delivery vehicles from gasoline to propane to increase fuel efficiency.

EquipmentVehiclesBuildingsLand ImprovementsRepair and Maintenance Expense

10.

Paid $10,000 to replace the company’s light bulbs with more energy-efficient bulbs.

VehiclesEquipmentLand ImprovementsRepair and Maintenance ExpenseBuildings

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Answer #1

1.

Operator controls on equipment were replaced for $7,370, because the original control devices were not adequate.

Equipment

2.

A total of $5,013 was spent for decorative landscaping (planting flowers and shrubs, etc.).

Land Improvements

3.

A new air conditioning system for the office was purchased for $16,730.

Equipment

4.

Windows broken in a labour dispute were replaced for $2,219.

Repair and Maintenance

5.

A fee of $1,640 was paid for adjusting and testing new machinery before its use.

Equipment

6.

Machinery damaged by a forklift was repaired for $5,260.

Repair and Maintenance

7.

The transmission in a delivery truck was repaired for $2,260.

Repair and Maintenance

8.

Expenditures totalling $2,830 were incurred to repaint the exterior of the building.

Repair and Maintenance

9.

Paid $20,000 to convert the company’s delivery vehicles from gasoline to propane to increase fuel efficiency.

Vehicles

10.

Paid $10,000 to replace the company’s light bulbs with more energy-efficient bulbs.

Repair and Maintenance

Kindly comment if you need further assistance.

Thanks‼!

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