AccountingHub
Practice · C2

Add to the asset, or expense it?

Sort each cost. Every miss tells you why.

0 of 11 · 0 tries
  1. 1.Freight to deliver a new machine

  2. 2.Installation and testing

  3. 3.Insurance while the machine is in transit

  4. 4.Insurance after the machine is running

  5. 5.Repairing damage caused by careless unloading

  6. 6.Oil change and routine maintenance

  7. 7.Replacing a motor so the machine lasts three more years

  8. 8.Clearing and grading land for a building

  9. 9.Paving a parking lot

  10. 10.Back property taxes the buyer agrees to pay at purchase

  11. 11.Property taxes for the years after purchase

Practice · P1

Journalize the 10 situations yourself

0 of 10 solved

Buy the machine: price $9,500, freight $300, installation $200, all cash.