Cala Manufacturing purchases land for $301,000 as part of its plans to build a new plant. The company pays $35,800 to tear down an old building on the lot and $52,922 to fill and level the lot. It also pays construction costs of $1,755,300 for the new building and $110,800 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.
Cala Manufacturing purchases land for $301,000 as part of its plans to build a new plant. The company pays $35,800 to tear down an old building on the lot and $52,922 to fill and level the lot. It also pays construction costs of $1,755,300 for the new building and $110,800 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 $301,000 as part of its plans to build a new plant. The company pays $35,800 to tear down an old building on the lot and $52,922 to fill and level the lot. It also pays construction costs of $1,755,300 for the new building and $110,800 for lighting and paving a parking area.
Prepare a single
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