Accountants distinguish between capital and revenue expenditures for some types of transactions. The entries for such transactions can be made to any one of the following accounts:

 

Balance sheet accounts

a. Land

b. Buildings

c. Equipment

d. Trucks

e. Automobiles

f. Accumulated depreciation Income statement accounts

g. A revenue account

h. An expense account.

Required: For each transaction below, indicate the account to be adjusted. Explain your answers and state any assumptions you make.

Example:

 __b__ Architect fees to design building

 _____ Battery purchased for truck

_____ Cash discount received on payment for equipment

_____ Commission paid to real estate agent to purchase land

_____ Cost of equipment test runs

_____ Cost to remodel building

_____ Cost to replace manual elevator with automatic elevator

_____ Cost of sewage system

_____ Equipment assembly expenditure

_____ Expenditures for debugging equipment

_____ Installation of air-conditioner in automobile

_____ Insurance paid during construction of building

_____ Legal fees associated with court case to defend title to land purchased

_____ Oil change for truck

_____ Payment for landscaping

_____ Proceeds received on demolition of derelict building on land purchased

_____ Expenditures for removal of derelict structures

_____ Repair made to building after moving in

_____ Repair of collision damage to truck

_____ Repair of torn seats in automobile

_____ Replacement of rusted fender on automobile

_____ Replacement of transmission in automobile

_____ Special floor foundations for installation of equipment

_____ Tires purchased for truck

_____Transportation expenditures to bring equipment to plant.