"for excellentassignments"

E9-1 The following expenditures relating to plant assets were made by Spaulding Company during the first 2 months of 2011.

1. Paid$5,000ofaccruedtaxesattimeplantsitewasacquired.

2. Paid $200 insurance to cover possible accident loss on new factory machinery while the ma-

   chinery was in transit.

3. Paid$850salestaxesonnewdeliverytruck.

4. Paid$17,500forparkinglotsanddrivewaysonnewplantsite.

5. Paid$250tohavecompanynameandadvertisingsloganpaintedonnewdeliverytruck.

6. Paid$8,000forinstallationofnewfactorymachinery.

7. Paid$900forone-yearaccidentinsurancepolicyonnewdeliverytruck.

8. Paid$75motorvehiclelicensefeeonthenewtruck.

Instructions

(a) Explain the application of the cost principle in determining the acquisition cost of plant assets.

(b) List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.