Cala Manufacturing purchases land for $297,000 as part ofits plans to build a new plant. The company pays $27,300to tear down an old building on the lot and $40,356 to filland level the lot. It also pays construction costs of$1,791,300 for the new building and $113,072 for lightingand paving a parking area.Prepare a single journal entry to record these costsincurred by Cala, all of which are paid in cash.View transaction listJournal entry worksheetARecord the total costs of the plant assets.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Land297,000BuildingLand improvementsRecord entryClear entryView genera

A Journal entry is a primary entry that records the financial transactions initially. The…

Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The company pays $27,300 to tear down an old building on the lot and $40,356 to fill and level the lot. It also pays construction costs of $1,791,300 for the new building and $113,072 for lighting and paving a parking area.

Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The company pays $27,300 to tear down an old building on the lot and $40,356 to fill and level the lot. It also pays construction costs of $1,791,300 for the new building and $113,072 for lighting and paving a parking area.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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