Answer:
A.)Legal fees paid in connection with the purchase of land are $1,500 = ASSET
(B.) Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000 = ASSET
(C) A meat market purchases a meat-grinding machine at a cost of $3,500 = ASSET
(D) On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 MONTHS = EITHER ASSET OR EXPENSE
(E) Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the Business = ASSET
(F) Alvarez’s Florists pays wages of $2,100 for the month to an employee who serves as driver of their delivery TRUCK = EXPENSE
Explanation:
There are various distinctions which can be made between asset and expense. However, a very distinct difference between them is that ASSET usually are regarded as those spendings which provides or offers future economic benefit to a company such as equipment purchase while EXPENSE may be classed as those spendings meant to offset a current bill such as salary or wage payment.
