ala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old building on the lot and $39,322 to fill and level the lot. It also pays construction costs $1,748,500 for the new building and $110,371 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
ala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old building on the lot and $39,322 to fill and level the lot. It also pays construction costs $1,748,500 for the new building and $110,371 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old building on the lot and $39,322 to fill and level the lot. It also pays construction costs $1,748,500 for the new building and $110,371 for lighting and paving a parking area.
Prepare a single
Transcribed Image Text:Cala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company pays $26,600 to tear down an old
building on the lot and $39,322 to fill and level the lot. It elso pays construction costs $1,748,500 for the new building and $110,371 for lighting
and paving a parking area.
Prepare a single joumal entry to record these costs incurred by Cals, all of which are paid in cash.
View transaction list
Journal entry worksheet
A
Record the total costs of the plant assets.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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