D2. After planning to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building waslocated. The negotiated purchase price for this real estate was $2,150,000 for the lot plus $670,000 for the building. Thecompany paid $94,000 to have the old building torn down and $124,000 for levelling the lot. Finally, it paid $3,830,000 inconstruction costs, which included the cost of a new building plus $234,000 for lighting and paving a parking lot next to thebuildingPresent a single journal entry to record the costs, incurred by Kallisto, all of which were paid in cash (assume a date ofMarch 10, 2023, for your entry)View transaction list View journal entry worksheetNo1DateMarch 10, 2023LandBuildingGeneral JournalDebitCreditb

Journal entry is the first stage of accounting process.Journal entry used to record business…

After planning to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building located. The negotiated purchase price for this real estate was $2,150,000 for the lot plus $670,000 for the building. Th company paid $94,000 to have the old building torn down and $124,000 for levelling the lot. Finally, it paid $3,830,000 construction costs, which included the cost of a new building plus $234,000 for lighting and paving a parking lot next to building Present a single journal entry to record the costs, incurred by Kallisto, all of which were paid in cash (assume a date of March 10, 2023, for your entry) View transaction list View journal entry worksheet No Date General Journal Debit Credit

After planning to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building located. The negotiated purchase price for this real estate was $2,150,000 for the lot plus $670,000 for the building. Th company paid $94,000 to have the old building torn down and $124,000 for levelling the lot. Finally, it paid $3,830,000 construction costs, which included the cost of a new building plus $234,000 for lighting and paving a parking lot next to building Present a single journal entry to record the costs, incurred by Kallisto, all of which were paid in cash (assume a date of March 10, 2023, for your entry) View transaction list View journal entry worksheet No Date General Journal Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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Question

D2.

After planning to build a new plant, Kallisto Backpack Manufacturing purchased a large lot on which a small building was
located. The negotiated purchase price for this real estate was $2,150,000 for the lot plus $670,000 for the building. The
company paid $94,000 to have the old building torn down and $124,000 for levelling the lot. Finally, it paid $3,830,000 in
construction costs, which included the cost of a new building plus $234,000 for lighting and paving a parking lot next to the
building
Present a single journal entry to record the costs, incurred by Kallisto, all of which were paid in cash (assume a date of
March 10, 2023, for your entry)
View transaction list View journal entry worksheet
No
1
Date
March 10, 2023
Land
Building
General Journal
Debit
Credit
b

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Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is worth 100,000 and the building is worth 300,000. What cost should Utica assign to the land and to the building, respectively?
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