A company needed a new building. It found a suitable location with an existing old building on the land. The company reached an agreement to buy the land and the old building for $957,000 cash. The old building was demolished to make way for the needed new building. Following is information regarding the demolition of the old building and construction of the new one.Construction cost of new buildingCost for parking lotDemolition of old building$ 8,912,000305,000299,000Prepare a single journal entry to record the above costs assuming all transactions are paid in cash. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A company needed a new building. It found a suitable location with an existing old building on the land. The company reached an agreement to buy the land and the old building for $957,000 cash. The old building was demolished to make way for the needed new building. Following is information regarding the demolition of the old building and construction of the new one.Construction cost of new buildingCost for parking lotDemolition of old building$ 8,912,000305,000299,000Prepare a single journal entry to record the above costs assuming all transactions are paid in cash.

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.

 

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