E9-1 The following expenditures relating to plant assets weremade by Spaulding C

E9-1 The following expenditures relating to plant assets weremade by Spaulding Companyduring the first 2 months of 2011.1. Paid $5000 of accrued taxes at time plant site wasacquired.2. Paid $200 insurance to cover possible accident loss on newfactory machinery while the machinerywas in transit.3. Paid $850 sales taxes on new delivery truck.4. Paid $17500 for parking lots and driveways on new plantsite.5. Paid $250 to have company name and advertising slogan painted onnew delivery truck.6. Paid $8000 for installation of new factory machinery.7. Paid $900 for one-year accident insurance policy on new deliverytruck.8. Paid $75 motor vehicle license fee on the new truck.Instructions(a) Explain the application of the cost principle in determiningthe acquisition cost ofplant assets.(b) List the numbers of the foregoing transactions and oppositeeach indicate the account titleto which each expenditure should be debited.