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Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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 $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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.

FINANCIAL ACCOUNTING
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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Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Transcribed Image Text:Cala Manufacturing purchases land for $317,000 as part of its plans to build a new plant. The company pays $43,700 to tear down an old building on the lot and $64,600 to fill and level the lot. It also pays construction costs $1,586,800 for the new building and $100,164 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. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
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