Cala Manufacturing purchases land for $411,000 as part of its plans to build a new plant. The company pays $30,500 to tear down an old building on the lot and $45,087 to fill and level the lot. It also pays construction costs $1,726,400 for the new building and $108,976 for lighting and paving a parking area. Prepare a single journal entry to record the costs incurred by Cala, all of which are paid in cash.

Respuesta :

Answer:

Date    General journal                               Debit           Credit

            Land                                             $486,587

            ($411,000+$30,500+$45,087)

            Land improvements                    $108,976

            Building                                        $1,726,400

                   Cash                                                            $2,321,963